The personal-computer maker has agreed to buy Samsung Electronics Co’s printer business for $1.05 billion (36.63 billion baht), betting that it can grab share and generate income, even in a shrinking global market. This transaction is part of the Companys efforts to concentrate on its core business areas. Once its done though, Samsung will also be making a reciprocal investment of between $100 million and $300 million into HP’s business.
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HP’s disruption of the printer market involves replacing copiers with MFP (multifunction printer) technology, a segment where Samsung has a “formidable portfolio” of A3 devices that are claimed to be powerful yet easy to service.
The deal is expected to close within 12 months, pending regulatory approval.
The deal will also see HP slurp up Samsung’s printer business IP portfolio, which includes over 6,500 patents and a workforce of almost 1,300 researchers and engineers.
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Korea will be very important for the HP printing business moving forward, Lores said.
Ahead of that, Samsung plans to spin off its printing business into a separate company starting November 1st. At its height, the combined HP generated more than $100 billion annual revenue.
Last week, HPE realigned its portfolio and product roadmap through an $8.8 billion deal with Micro Focus, a software company based in Newbury, England.
Biggest acquisition for HP Inc since split from Hewlett Packard Enterprise.
Samsung does not disclose its printer sales separately, but researcher IDC said Samsung was ranked fifth with a 4.0 percent share in global hardcopy peripherals market in the second quarter.
In addition, HP (NYSE: HPQ) also acquires the freedom to manufacture printing engines, which is a core mechanism used in inside laser printers.
As part of the acquisition, HP will also take control of Samsung’s 6500 printing patents, plus a workforce of about 7500 people globally.
“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”, Weisler said.
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HP and Samsung started working with each other 12 months ago.
