HP Buying Samsung Electronics' Printer Business for $1.05B

Allan Goodman
September 13, 2016

Samsung's board of directors has approved the sale of the company's printing business to HP for $1.05bn. The US company sees it as an opportunity to "disrupt and reinvent the $55 billion copier industry, a segment that hasn't innovated in decades". It also includes thousands of patents and Samsung will invest as much as $300m in HP once the deal closes. Its figures showed that revenue from printers was down around 14 percent on the previous year, however Weisler noted that the rate of decline in printers was slowing in comparison to previous quarters.

"Copiers are outdated, complicated machines with dozens of replaceable parts requiring inefficient service and maintenance agreements", HP said in a statement announcing the acquisition. Customers are frequently frustrated with the number of visits needed to keep copier machines functioning.

RBC Capital Markets analyst Amit Daryanani says HP will be able to lessen its reliance on Canon technology through the Samsung printer business acquisition.

Samsung's print business holds more than 6,500 print patents and has a workforce of almost 1,300 employees.

The deal is expected to close within a year. "By leveraging our superior printing technology, we can change the status quo with next-generation A3 multifunction printers that improve the overall customer and partner experience while also serving as a springboard for growth in managed print and document services".

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Enrique Lores, HP's president of imaging and printing said, "Korea is going to be a very important site for the HP printing business going forward".

Samsung's printer business made $1.4 billion in income past year and comprises more than 6,500 printing patents as well as almost 1,300 staff with proficiency in laser printer technology.

"HP has said it does not want to acquire "me-too" technology to consolidate but to acquire disruptive technologies to bring innovation into the copier market", Milunovich said. But as it does with PCs, HP is trying to eke out a living in markets that are ostensibly shrinking.

Samsung will also make an investment of $100 million to $300 million in HP through "open market purchases" of the company's stock.

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