Reportedly, Xerox is looking to procure Hewlett Packard, the company which is having a market value worth 27 Billion dollars. The sources close to the matter have said that the Xerox board has discussed the possible workarounds as Xerox considers to buy HP. The board also talked about the future plan of action.
Xerox considering to buy HP
On Wednesday, the Xerox stocks recorded a hike when the reports of Xerox considering to buy HP surfaced. The deal will bring together the two powerful tech brands, which are the most renowned manufacturers and providers of durable printers and copiers to date.
Cash and Stock bid to buy HP
The deal will also be a high point for Xerox. People known to the matter have said that the company has plans to use the cash-and-stock bid for buying HP. It also noted that the Xerox board detailed the project on Tuesday this week. The company will bid at the current stock price for the HP.
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Xerox is looking forward to receiving a $2.3 Billion from another deal. The company plans to sell its joint venture stakes in the Fujifilm. It also adds that Xerox has a prospective commitment for funding from a leading bank.
Xerox and HP can benefit from the deal
Xerox is known for making large printers and copier machines. The company earns revenue of $10 Billion annually from renting their tools and providing maintenance of these machines for the various businesses. On the other hand, HP makes small size printers and printing devices.
HP is also one of the largest personal computer makers in the world. It posted a revenue of higher than 58 Billion dollars in the Fiscal year ending Oct 2018. The proposed deal can be a turning point in the fortune of both the companies lately struggling to save their businesses.
Both Companies Looking to Surge their Plummeting Businesses
As the news of Xerox considering to buy HP is making rounds, it is also apparent that two companies are struggling with their business, due to the decline in the need for the printed documents. The two companies have always been the household names in the printer and copier business. However, both Xerox and HP have been on a cost-cutting spree for years, and amalgamation is to create a sustainable operating model.