Xerox Holdings Corp. has announced it obtained $24 billion in financial commitments to pursue its acquisition of HP Inc.
In a letter to HP President and CEO Enrique Lores and board Chairman Chip Bergh, Xerox CEO and Vice Chairman John Visentin said the Norwalk-headquartered company received the backing of three major financial institutions to move forward with the proposed transaction.
“Over the last several weeks we have engaged in constructive dialogue with many of your largest shareholders regarding the strategic benefits of our proposal to acquire HP,” Visentin wrote in his letter to the HP leadership. “It remains clear to all of us that bringing our companies together would deliver substantial synergies and meaningfully enhanced cash flow that could, in turn, enable increased investments in innovation and greater returns to shareholders.
“But it also became clear from our dialogue with your shareholders that you and your advisers have been questioning our ability to raise the capital necessary to finance our proposal,” Visentin stated. “We have always maintained that our proposal is not subject to a financing contingency, but in order to remove any doubt, we have obtained binding financing commitments (that are not subject to any due diligence condition) from Citi, Mizuho and Bank of America. My offer stands to meet with you in person, with or without your advisors, to begin negotiating this transaction.”
HP did not immediately respond to Visentin’s letter.