HP to buy Samsung's printer business for $1.4bn

HP Inc has arranged to acquire Samsung’s printer business in a deal worth US$1.05 billion ($1.39 billion), as part of ongoing efforts to disrupt the US$55 billion copier industry.

The major deal marks the largest print acquisition in HP’s history. Pending shareholder and regulatory approval, it is expected to close within 12 months.

HP will use Samsung’s portfolio of A3 multifunction printers (MFPs) to support its goal of replacing copiers with superior MFP technology. Samsung’s printing business also has an IP portfolio of over 6500 patents and a workforce that includes nearly 1300 researchers and engineers.

As part of the deal, Samsung has agreed to invest between US$100 million and US$300 million in HP via open market share purchases after the transaction is complete.

HP President and CEO Dion Weisler said the deal is in line with the company’s strategy since it separated from enterprise division Hewlett-Packard Enterprise (HPE) last year.

“When we became a separate company just 10 months ago, it enabled us to become nimble and focus on accelerating growth and reinventing industries,” he said.

“We are doing this with 3D printing and the disruption of the $12 trillion traditional manufacturing industry, and now we are 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.”

Weisler said the copier business has not innovated in decades and is due for a reinvention.

Image courtesy of Hiram Huang under CC