Xerox puts HP buyout sales growth forecast at $1.5B
- 10 December, 2019 09:09
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)