HP Inc. reached a definitive agreement to acquire Samsung Electronics Co., Ltd.’s printer business in a deal valued at US$1.05 billion. HP states the acquisition positions it to disrupt and reinvent the US$55 billion copier industry. This is the largest print acquisition in HP’s history.
The company explains copiers are outdated, complicated machines with dozens of replaceable parts requiring inefficient service and maintenance agreements. Samsung, according to HP, has built a formidable portfolio of A3 MFPs and some with as few as seven replaceable parts.
HP plans to integrate Samsung’s printer business’ products, it their mobile-first and cloud-first user experience, with its own next-generation PageWide technologies.
“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 the disruption of the US$12 trillion traditional manufacturing industry, and now we are going after the US$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 also brings an intellectual property portfolio of more than 6,500 printing patents and a workforce that includes nearly 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.
“HP Inc. has been a valued partner and customer of Samsung,” said Dr. Oh-Hyun Kwon, vice chairman and CEO of Samsung Electronics Co., Ltd. “We can now leverage our combined capacity for innovation to further enhance the value of our relationship.”
The acquisition is expected to be accretive in the first full year following closing, with cost synergies and a strong financial model. The transaction is expected to close within 12 months pending regulatory review and other customary closing conditions. After closing, Samsung has agreed to make a US$100 million to US$300 million equity investment in HP through open market purchases.
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