Xerox has given up on its attempt to acquire HP, citing “the current global health crisis and resulting macroeconomic and market turmoil caused by CoVid-19”.
Xerox had earlier announced that it would postpone presentations and meetings relating to the attempted acquisition due to the threat from the Corona Virus. However, at that time Xerox added that it did not consider “the market decline since the date of its offer or the temporary suspension of trading in HP shares that occurred on March 10, 2020 and March 12, 2020 as a result of market-wide circuit breakers procedures to constitute a failure of any condition to its offer to acquire HP.”
Nonetheless, Xerox has now withdrawn its tender offer for HP’s shares, and is also giving up on its efforts to nominate its supporters to HP’s Board of Directors. Strangely, Xerox’s statement went on to thank everyone involved from HP shareholders to their own bankers, sounding somewhat like a speech accepting an Oscar, though I doubt that any of the players involved on either side deserve any awards for this pointless exercise.
HP acknowledged the end of this saga with its own statement, saying: “Our focus remains on addressing the needs of our ecosystem of stakeholders around the world, ensuring that we build on our strength and resiliency throughout this crisis and position the business for the opportunities ahead.”
Nonetheless, Xerox did manage to complete two other acquisitions last week, for Altodigital and ITEC Connect, both based in the UK. Xavier Heiss, EVP and president of EMEA Operations, Xerox. “Altodigital and ITEC are both leaders in managed print services and specialists in IT services, an area into which Xerox is rapidly expanding with new offerings.”