Xerox is weighing whether to buy computer and printer maker HP using stock and cash, according to unnamed sources in a Wall Street Journal report.
HP’s market value is now about $27 billion, three times the size of Xerox. There’s no guarantee Xerox will ultimately bid on the larger legacy tech giant, however. The Xerox board discussed the takeover yesterday, according to the unnamed sources.
Separately, Xerox expects to conclude a deal to sell its part in a 57-year-old joint venture with Fujifilm, which could yield Xerox $2.3 billion. Fujifilm also announced Tuesday it has dismissed a lawsuit against Xerox.
HP is the printer and PC side of the former Hewlett Packard Co. In 2015, HP was created alongside Hewlett Packard Enterprise, which sells servers and storage gear, as well as services, to corporations.
HP installed a new CEO last week, Enrique Lores. He replaced Dion Weisler who is stepping down for family-health reasons. Weisler will stay on the board.
In early October, HP announced a restructuring to cut about 16% of its work force, or about 9,000 people, to save $1 billion by the end of 2022.
HP shares are down about 10% for the year and closed on Tuesday at $18.40. Meanwhile, Xerox shares are up 84% for the year as a result of cost-cutting moves. Its stock closed on Tuesday at $36.37. Xerox raised its 2019 outlook in its third quarter earnings report issued a week ago.