Xerox Expects $1.5 Billion Revenue Growth With HP Takeover

BUSINESS TURKMENISTAN
Xerox Expects $1.5 Billion Revenue Growth With HP Takeover
Xerox printer manufacturer expects its proposed acquisition of personal computer company HP to result in sales growth of as much as $1.5 billion for the combined company.

Xerox printer manufacturer expects its proposed acquisition of personal computer company HP to result in sales growth of as much as $1.5 billion for the combined company, according to Xerox’s presentation to the computer company’s shareholders made public on Monday.

To get to this amount, Xerox says it has a three-year roadmap. The merged entity will generate more than $4 billion in free cash flow in the first year before taking any synergies into account, according to the presentation.

The roadmap includes generating $540 million to $750 million from pitching complementary products to existing clients, $50 million to $100 million from manufacturing and distribution efficiencies and $350 million to $400 million from integrating HP products into Xerox’s office-as-a-service offerings.

HP’s shares were valued at $20.50 at 9:58 a.m. Monday, while Xerox rose less than 1% to $37.99.

Last month, HP's board unanimously rejected the bid, arguing that the offer significantly undervalued HP and was not in the best interest of its shareholders. HP has a market value of $27 billion, about three times the size of Xerox.