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Xerox Increases Offer Price for HP Inc. to $24 Per Share

NORWALK, Conn. —  Xerox Holdings Corporation (NYSE: XRX) (“Xerox”) today announced its intention to launch a tender offer on or around March 2, 2020 for all of the outstanding shares of common stock of HP Inc. (NYSE: HPQ) (“HP”) at a price of $24.00 per share, which will be comprised of $18.40 in cash and 0.149 Xerox shares for each HP share.1 The tender offer will not be subject to any conditions related to financing or due diligence.Feedback from HP Stockholders
Xerox has met, in some cases multiple times, with many of HP’s largest stockholders. These stockholders consistently state that they want the enhanced returns, improved growth prospects and best-in-class human capital that will result from a combination of Xerox and HP. The tender offer announced today will enable these stockholders to accept Xerox’s compelling offer despite HP’s consistent refusal to pursue the opportunity.

Immediate Value Creation
The value created by the synergies realized in a combination of Xerox and HP is incremental to any value that HP can create by revising its strategic plan or dramatically changing its capital allocation policy to incorporate additional share repurchases. Xerox’s offer provides HP stockholders with both significant, immediate cash value, and meaningful upside via equity ownership in the combined company. The headline offer price of $24.00 per share represents a 41% premium to HP’s unaffected 30-day volume weighted average trading price of $17.00. The implied offer value of ~$33 per share represents a 94% premium to HP’s unaffected 30-day volume weighted average trading price of $17.00.

The Tender Offer
The tender offer will be subject to there being validly tendered and not withdrawn at least a number of shares representing a majority of the issued and outstanding shares of HP and other customary conditions for a transaction of this type.

Citi is acting as Xerox’s financial advisor, and King & Spalding LLP is providing legal counsel to Xerox. Willkie Farr & Gallagher LLP is providing legal counsel to Xerox’s independent directors, and Moelis & Company is acting as financial advisor to Xerox’s independent directors.

For additional details on the offer, the benefits of the transaction to both companies’ stockholders, and the Xerox management team, please visit www.XplusHP.com.

About Xerox
Xerox Holdings Corporation (NYSE: XRX) makes every day work better.
 We are a workplace technology company building and integrating software and hardware for enterprises large and small. As customers seek to manage information across digital and physical platforms, Xerox delivers a seamless, secure and sustainable experience. Whether inventing the copier, the Ethernet, the laser printer or more, Xerox has long defined the modern work experience. Learn how that innovation continues at xerox.com.

By |February 11th, 2020|Industry Insights|

About the Author:

Belinda McDonald has worked internationally in the U.S., South America, and Europe, offering innovative business techniques to Fortune 500 companies as well as SMBs. She has achieved in the manufacturing industry, copier parts distribution, POS printer hardware/software distribution, media intelligence, and marketing. McDonald’s broad industry knowledge, combined with the disciplines learned while earning her degree in Communications from Louisiana State University, has boosted her recognition as a person who has a finger on the pulse of the office technology space. She is the Communication and Events Manager for ITEX.

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