Samsung Electronics Co. said Monday it has agreed to sell its printer business unit to USA personal-computer maker HP Inc. for US$1.05 billion.
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“This will help us accelerate our growth into the A3 space”, said HP Inc. Samsung already has a business selling A3 machines, which HP will acquire in the deal. “You have control over the core technology”, he said. HP will inherit 6,000 Samsung employees once the deal closes, which HP expects will be in the second half of 2017, said HP president of imaging and printing Enrique Lores.
HP said Samsung’s printer business brings a “compelling intellectual property portfolio” of more than 6,500 printing patents and a “world-class workforce” that includes almost 1,300 researchers and engineers with advanced expertise in laser printer technology, imaging electronics, and printer supplies and accessories to support continued innovation in print market solutions.
Samsung Electronics Co. nominated Lee Jae Yong to its board to allow the son of its ailing chairman to take a more active role in strategic decision making. Last year, consumer electronics contributed to just 4.7% of the company’s operating profit, while the higher-profile smartphone and chip divisions generated 38.4% and 48.4%, respectively.
The nomination signals a new era for Samsung under a third generation of its founding family. Printing engines account for 10% to 15% of the cost of goods HP sells, he estimated.
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A few weeks ago, HP shared its plans to acquire Samsung with Canon, which Canon was supportive of, said Lores. Beyond helping HP enter the market for A3 machines, he said, the deal would likely help winnow the number of suppliers in the market. “We are going to be bringing to market a very clear value proposition”, he said. “We want to drive this consolidation and make it happen”.
