December 9, 2019 / 3:35 PM / a month ago

Xerox expects revenue growth of up to $1.5 billion with HP takeover

The company logo for Xerox is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., March 11, 2019. REUTERS/Brendan McDermid

(Reuters) - Xerox Holdings Corp (XRX.N) expects its proposed acquisition of personal computer company HP Inc (HPQ.N) to result in sales growth of as much as $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 $33.5 billion buyout bid directly to HP shareholders after HP refused to open its books for due diligence.

Xerox said revenue growth of $1 billion to $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 $4 billion in the first year before any synergies, Xerox added.

Last month, HP rejected Xerox’s $22 per share offer that consists of $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

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