The week has been the scene of talks between Xerox and HP, which may soon be bought by the former. The two companies could soon be one of their billionaire business moves beyond the analysis phase. According to US media, since Tuesday (Nov 5) both have been discussing the acquisition of HP by its rival, in a transaction that could reach $ 27 billion.
At first glance, this is a deal that may not seem to make sense to HP as it’s three times the size of Xerox, but on the one hand, its revenues in the print market are plummeting. The company’s shares have accumulated losses of over 8% since the beginning of the year.
As for Xerox, while it continues to see its revenue shrink, it still has good numbers and accumulates a growth in stock value of around 84%. The deal could leave it with its rival’s current infrastructure and business, which at the tip of the pencil could save it in the short term about $2 billion in downtime, which would be welcome.
The press also reports that a major US bank would be encouraging the deal, with credit pledges to Xerox. Neither company wanted to comment.
In the end, Xerox – which is already Xerox and made us disappear with the “photocopy” entry in our vocabulary – could come out even bigger after spending a great fortune. This is because its business is now concentrated in the corporate market with revenues from large-scale industrial and industrial solutions, while its competitor has wide penetration in the home market, both with printers and computers.