HP today announced that it will acquire Samsung’s printer business in a deal valued at $1.05 billion. “The proposed acquisition positions HP to disrupt the $55 billion copier industry, a segment that hasn’t innovated in decades.” said the company.
Samsung said that it will spin off its Printing Business Unit into a separate company on November 1st, upon the approval of shareholders, and sell 100% stake of the newly created company and overseas assets related to the business to HP. Under the agreement, Samsung will source printers from HP and continue to market in Korea under the Samsung brand.
HP at the Global Partner Conference 2016 introduced an extensive line of A3 multifunction printers (MFPs) and services. For partners, HP launched a new services-led channel business model, enabling its channel to sell and service more efficiently, while delivering customers affordable color, reliable performance, and industry-leading security through HP PageWide Enterprise, PageWide Pro and LaserJet Managed MFP platforms.
The transaction is expected to close within one year, subject to the appropriate regulatory approvals. After closing, Samsung will make a $100 million to $300 million equity investment in HP through open market purchases.
Commenting on the acquisition, Dion Weisler, president and CEO of HP, said:
When we became a separate company just 10 months ago, it enabled us to become nimble and focus on accelerating growth and reinventing industries. We are doing this with 3D printing and the disruption of the $12 trillion traditional manufacturing industry, and now we are going after the $55 billion copier space. The acquisition of Samsung’s printer business allows us to deliver print innovation and create entirely new business opportunities with far better efficiency, security, and economics for customers.
Dr. Oh-Hyun Kwon, vice chairman and CEO of Samsung Electronics Co., Ltd, said:
HP Inc. has been a valued partner and customer of Samsung. We can now leverage our combined capacity for innovation to further enhance the value of our relationship.