HP Inc. is acquiring Samsung Electronics Co.’s printer business in a deal worth $1.05 billion.
HP said, on Monday, that it is the largest print acquisition in the company’s history that will strategically help it to go from a traditional copier to a multifunction printer. HP is planning to inherit 6000 Samsung employees once the deal is closed. Out of those 6000 employees, 2000 are research and development engineers, 1000 are sales and support staff, and the rest of them work in service and manufacturing, Lores said. HP has quoted that the Korea is going to be an important site for the printing business.
Last week, the Seol Economic Daily reported that Samsung was considering to sell its printer business as the Korean electronics giant was facing tough competition from rivals like Epson, Canon, and HP. The disinvestment was part of a corporate overhaul by Samsung to better focus on its core Smartphone, television, and memory chip business.
In a statement, HP said the acquisition will help it “disrupt and reinvent” the $55bn copier industry, a segment that hasn’t innovated in decades. It is buying a big printing in Asia, as well as Samsung’s laser printing technology and patents. According to Tuan Tran, HP global general manager of office printing, Samsung’s laser printing technology will be crucial for HP as it attempts to enter the copier machine market, which requires machines that can quickly print multiple copies. They also added that customers were frequently frustrated with the broken copiers and this deal will help HP invest in better technology.
HP leads the shrinking printer market with 36% market share and 8,385,014 machines shipped in the first quarter, an 18.6% drop from the previous year during the same time period, according to IDC (International Data Corporation).
By acquiring Samsung, HP would eliminate one of its printer rivals and gain a possible boost in revenue to balance declines in its printing business. HP’s printing business has dropped during the past three-quarters since HP formally split in November from Hewlett-Packard Enterprise, it’s data-center-focused sibling