Is one of Silicon Valley’s most-storied companies on the brink of getting acquired by another long-time tech industry warhorse?
That’s what could soon happen to HP, the PC and printing industry giant that has been a bellwether of the region’s tech sector for eight decades.
According to a report from the Wall Street Journal, Xerox is said to be considering making a cash and stock offer for HP that would value the Palo Alto-based company at $27 billion. The Journal cited “people familiar with the matter” as saying Xerox’s board of directors discussed acquiring HP on Tuesday.
When asked about the potential for HP being acquired by Xerox, an HP spokesperson said, “We do not comment on rumors or speculation.” Xerox didn’t immediately return a request for comment.
Should a deal occur, it would bring together two companies that are still well-known, and highly recognized in the tech industry and among the general public, but haven’t been on the forefront of cutting-edge technology in some time.
HP took over the PC and printing business of Hewlett-Packard when that company split in two in 2015. The rest of the old Hewlett-Packard took on the name Hewlett Packard Enterprise, and is responsible for data-storage equipment, servers and other business-related computer services.
Xerox remains widely known for its printers and copy machines that are mostly used by businesses. The company also makes money from printing and management services.
If HP gets acquired, it will come during a period of more change for the company, an longtime HP veteran Enrique Lores just took over as the company’s chief executive on November 1. Lores replaced Dion Weisler, who in August said he would step down from the CEO job due to unspecified family health reasons.
In October, HP also said it would begin a new restructuring program that would shed 9,000 jobs as part of an effort to cut more than $1 billion in annual costs.
The report of the possible acquisition sent HP shares up by more than 15%, to $21.26, Wednesday, while Xerox’s stock price slipped by almost 2%, to $36.37.