Menu
Xerox puts HP buyout sales growth forecast at $1.5B

Xerox puts HP buyout sales growth forecast at $1.5B

Xerox said revenue growth of US$1 billion to US$1.5 billion can be achieved through a three-year roadmap

Credit: Reuters

Xerox expects its proposed acquisition of personal computer company HP to result in sales growth of as much as US$1.5 billion for the combined company, according to a presentation by the printer maker.

The presentation, addressed to HP shareholders, comes two weeks after Xerox said it was planning to take its US$33.5 billion buyout bid directly to HP shareholders after HP refused to open its books for due diligence.

Xerox said revenue growth of US$1 billion to US$1.5 billion can be achieved through a three-year roadmap, which involves cross-selling products and streamlining operations.

The combined company will have a free cash flow of more than US$4 billion in the first year before any synergies, Xerox added.

Last month, HP rejected Xerox's US$22 per share offer that consists of US$17 in cash and 0.137 Xerox share for each HP share, saying the offer "significantly undervalues HP".

HP, however, has left the door open for a deal that would involve it becoming the acquirer and said it can evaluate the merits by a due diligence of Xerox.

(Reporting by Munsif Vengattil in Bengaluru; Editing by Maju Samuel)


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments