Recent reports from Forbes show Xerox, the decades-old printing and digital documents company, has raised the funds it needs from big banks to acquire larger computer and printing rival HP for $33 billion. The takeover proposal is considered hostile by the HP board of directors, and Forbes reports the two companies have had tense relations since the initial offer in November of last year.
The standing offer of $33 billion will be left in the hands of HP shareholders, who have mixed feelings on the acquisition. Some feel the takeover will reinvigorate the two struggling businesses, while others point to the combined debt of Xerox and HP as being too large.
Technology company acquisitions have had some of the largest price tags in history, with giants like Dell and Microsoft paying billions for smaller startups and competitors in the hopes of gaining an advantage. With tech companies continuing to become the most valued businesses in the world, the prices for acquisition also continue to skyrocket. According to PCMag.com, the most expensive tech mergers and takeovers in history have occurred in the last five years.
As of February 10, 2020, Xerox has increased their buyout offer to roughly $34 billion, matching IBM's acquisition of Red Hat in 2018 as the third-largest price in history.