Samsung Electronics announced yesterday that it had reached an agreement to sell its printer business to HP for $1.05 billion.
Advertisement
HP said the acquisition is also the largest-ever related to print technology in the company’s history, and is meant to give it a boost as it moves into multi-function printers and away from old-school copy machines, and improve its place in the market for laser printers.
Canon is HP’s main supplier of printing engines in its existing product line, a relationship, Lores said he expected to continue. It is the market leader in the desktop printer business. HP said one of the benefits of those printers is that many of Samsung’s offerings come with as few as seven replaceable parts, making the devices easier and less expensive to service.
It is buying a big printing presence in Asia, as well as Samsung’s laser printing technology and patents.The deal comes days after HP’s sister company sold its software business to rising United Kingdom tech champion Micro Focus.
Samsung will also make an investment of $100 million to $300 million in HP through “open market purchases” of the company’s stock.
In a statement, HP President and CEO Dion Weisler said, “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”. HP claims it will attempt to replace “outdated” copiers with multifunction printers, including Samsung’s collection of A3 MFPs.
Recently, software HP’s sister company sold its business to United Kingdom technology firm Micro Focus. Even if consumers are printing less, paper copies appear to remain important in many industries. HP last month reported that revenue from ink and toner supplies declined 18 per cent in the third fiscal quarter from the year-earlier period, while printer hardware unit sales fell 10 per cent. Last year, consumer electronics contributed just 4.7% of the company’s operating profit, while the higher-profile smartphone and chip divisions generated 38.4% and 48.4%, respectively.
Advertisement
The transaction between the two companies is now subjected for regulatory approval, but is expected to conclude within a period of 12 months. HP’s biggest competitor in this particular market segment is Canon, which holds a 22 percent market share.
