Xerox is considering making a play for HP in a deal that would join two household names with storied pasts scrambling to retool their businesses as the need for printed documents declines
By Cara Lombardo Nov. 5, 2019 10:50 pm ET Xerox Holdings Corp. XRX 4.90% has set its sights on a takeover of personal-computer and printer maker HP Inc., HPQ 2.22% an audacious move that would unite two fading stars of technology.
Working in Xerox’s favor: It expects a $2.3 billion windfall from a deal to sell stakes in joint ventures with Fujifilm Holdings Corp. , which was announced Tuesday along with the dismissal of a $1 billion-plus lawsuit filed against Xerox by the Japanese technology company. Xerox, based in Norwalk, Conn., primarily makes large printers and copy machines and most of its almost $10 billion in annual revenue comes from renting and maintaining them for businesses. HP, based in Palo Alto, Calif., sells mainly smaller printers and printing supplies and is also one of the largest PC makers in the world. It posted revenue of more than $58 billion for its most recent fiscal year, ended in October 2018.
HP in early October said Mr. Lores would implement a restructuring plan that would shrink the company’s ranks by as many as 9,000 people, or 16% of its workforce, and yield annual cost savings of $1 billion. The company outlined plans to revive its printer business, which tends to have higher profit but has struggled as customers buy ink cartridges elsewhere.
HP shares, meanwhile, are down 10% so far this year. It is slated to report its fiscal fourth-quarter earnings Nov. 26.
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