Samsung Printer Business acquired by HP for $1.05 bn

HP Inc. (NYSE: HPQ), the world leader in printing, today announced a definitive agreement to acquire Samsung Electronics Co., Ltd.'s (005930.KS) printer business in a deal valued at $1.05 billion in today's held HP Global Partner conference (GPC),Boston,USA.

The acquisition positions HP to disrupt and reinvent the $55 billion copier industry, a segment that hasn’t innovated in decades.

Integrating the Samsungprinter business' products, including their mobile-first and cloud-first user experience, with HP’s next-generation PageWide technologies will create a breakthrough portfolio of printing solutions with the industry’s best device, document, and data security. This is the largest print acquisition in HP's history and accelerates its growth opportunities in the copier segment, strengthens its leading laser printing portfolio that has been established with Canon, and paves the way for future printing innovation. It also creates new avenues for growth and greater profitability for partners as they expand managed print services as sales models shift from transactional to contractual.

Dion Weisler, president and CEO of HP 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."

Samsung’s printer business also brings a compelling intellectual property portfolio of more than 6,500 printing patents and a world-class 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 has been a valued partner and customer of Samsung," said Dr Oh-Hyun Kwon, vice chairman and CEO, Samsung Electronics. "We can now leverage our combined capacity for innovation to further enhance the value of our relationship," added Kwon. Acquiring Samsung’s printer business will also strengthen HP’s ability to service customers in global laser printing, a category where it has enjoyed a strong, mutually beneficial partnership with Canon for more than three decades. HP is confident this transaction will provide new opportunities to further strengthen and accelerate this highly valued 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 $100 million to $300 million equity investment in HP through open market purchases.