HP buying Samsung Electronics’ printer business for $1.05B

The deal followed HP’s sister company selling its software business to increasing United Kingdom tech champion Micro Focus.

Samsung will spin off the printing business unit into a separate company as of 1 November. HP will inherit 6,000 Samsung employees once the deal closes, including almost 2,000 research and development engineers, 1,000 sales and support staff, and the rest in service and manufacturing.

HP has made a decision to acquire Samsung’s copier business for around $1.05 billion with the aim of replacing today’s current copiers with its multifunction printers (MFPs).

HP said that Samsung has a “formidable portfolio” of A3-capable MFPs, and that integrating these business devices with HP’s PageWide tech will “create a breakthrough portfolio of printing solutions with the industry’s best device, document, and data security”.

“HP and Canon have long discussed print innovation to create customer value in business printing and in the growing MPS market”.

Once the deal closes, which HP expects to occur to within the next 12 months, HP will take charge of 6,000 Samsung employees and, more importantly, over 6,500 printing patents. HP has previously relied on external suppliers, including Canon, for the core printing engines in its laser printers. Not quite. Samsung would continue to source printers from HP and sell them under the Samsung name… in Korea.

HP said the acquisition would help it to “disrupt and reinvent” the $55bn copier industry, a segment that “hasn’t innovated in decades”.

This is the largest print acquisition in HP’s history.

HP Inc is set to acquire Samsung’s printing business in a deal worth $1.05bn (£792bn). Rather, the last quarter’s report by IDC show that there has been a decrease in shipments by 18.6% for HP alone as compared to the previous year.

HP Inc sees its future in copiers and printers.

Oh-Hyun Kwon, Vice Chairman and CEO, Samsung Electronics said, “HP has been a valued partner and customer of Samsung”. HPE now focusses on service business whereas HP deals in PCs and printers.

“With the sale of the business, Samsung will put more focus on growing flagship businesses, and HPI will be able to cement its lead as the No.1 printer maker in the global market”, Samsung said in a statement.

As part of the deal, Samsung agreed to invest $100 million to $300 million in HP through open-market purchases after closing, demonstrating its confidence in the direction HP is taking its business.