Samsung to take a stake worth up to $300m in the separated company
HP Inc is acquiring Samsung Electronics’ printer business in a deal valued at $1.05 billion.
Samsung has built a portfolio of A3 MFPs. Integrating the Samsung printer business’ products with HP’s PageWide technologies will create a “breakthrough portfolio” of printing solutions, said HP, with the industry’s “best device, document and data security”, it claimed.
This is the largest print acquisition in HP’s history. “When we became a separate company just 10 months ago, it enabled us to become nimble and focus on accelerating growth and reinventing industries,” said Dion Weisler, president and CEO of HP.
“We are doing this with 3D printing and are now 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.”
Samsung’s printer business includes 6,500 printing patents and a workforce that includes nearly 1,300 researchers and engineers with expertise in laser printer technology, imaging electronics and printer supplies and accessories.
“HP Inc has been a valued partner and customer of Samsung,” said Dr Oh-Hyun Kwon, vice chairman and CEO of Samsung Electronics. “We can now leverage our combined capacity for innovation to further enhance the value of our relationship.”
Acquiring Samsung’s printer business will also strengthen HP’s ability to service customers in global laser printing, a category where it has had a three decades partnership with Canon, which will continue.
“The acquisition is expected to be accretive in the first full year following closing, with cost synergies and a strong financial model,” HP Inc said. The transaction is expected to close within 12 months. After closing, Samsung has agreed to make a $100 million to $300 million equity investment in HP through open market purchases.