Xerox Holdings Corp. has set its sights on a takeover of personal-computer and printer maker HP Inc., an audacious move that would unite two fading stars of technology.

Xerox

XRX, +4.90%

  is considering making a cash-and-stock offer for HP

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 , which has a market value of about $27 billion, according to people familiar with the matter. The copier maker’s board discussed the possibility Tuesday, the people said.

There is no guarantee Xerox will follow through with an offer or that one would succeed. HP, which installed a new chief executive just last week, is more than three times the size of Xerox and any bid would be at a premium to its current stock price, the people said.

Working in Xerox’s favor: It expects a $2.3 billion windfall from a deal to sell stakes in joint ventures with Fujifilm Holdings Corp.

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 , which was announced Tuesday along with the dismissal of a $1 billion-plus lawsuit filed against Xerox by the Japanese technology company. Xerox has also received an informal funding commitment from a major bank, known as a “highly confident letter,” the people said.

An expanded version of this report appears on WSJ.com.

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2019-11-05