This Week in Imaging: It’s Beginning to Look a Lot Like HP Acquires Xerox
While this is of course speculation, it’s beginning to look a lot like HP Inc. will acquire Xerox – not in its entirety, but several select parts.
Xerox, led by Carl Icahn-backed management, appears to be being readied for sale, with the company being converted into a subsidiary owned by a newly created holding company, which is said will make it easier to sell, either in its entirety or by unit. Xerox has also stated that it intends to sell its debt-ridden leasing unit (which makes up $3.6 billion of Xerox’s total $5.5 billion debt), and is also outsourcing some administrative and support jobs. One result is that its share price, as of March 21, 2019, is $32.75 – up from a low of $19 per share this past December.
HP Inc. had previously expressed interest in Xerox at around the end of 2017 – before the scuttled Xerox-Fujiflm deal. HP may wind up with Xerox, or at least key business units that won’t include the leasing unit. Xerox’ top leadership position in managed print services would be a big boost for HP. One significant thing that may scare HP away however is Fujifilm’s pending $1 billion lawsuit against Xerox for breaking its acquisition deal, and which a New York judge recently declined to dismiss.
Meanwhile, despite the epic bad blood between Xerox and Fujifilm, there may still be a possibility, however small, that a deal could be hammered out, with Fujifilm withdrawing its lawsuit.
This Week in Imaging