HP has acquired Samsung’s printer business for $US1.05 billion, as the tech giant hones in on the potentially lucrative copier market.
Revealed during the vendor’s Global Partners Conference this week, HP said the “landmark day” represents the company’s largest print acquisition in history, as it chases new revenue growth in a challenging market.
Terms of the deal will see Samsung spin off the Printing Business Unit into a separate company as of November 1, upon the approval of shareholders, and sell a 100 per cent stake of the newly created company and overseas assets related to the business to HP.
Under the agreement, Samsung will source printers from HP and continue to market in Korea under the Samsung brand, with the transaction expected to close within one year, subject to the appropriate regulatory approvals.
In allowing Samsung to “concentrate on its core business areas”, the printing division encompasses 6,000 employees, a production base in China as well as more than 50 sales offices globally.
Alongside the acquisition, HP also unveiled a range of next-generation PageWide and LaserJet A3 multifunction printers this week, underscoring the organisation’s shift in focus post-split.
“Both moves are hugely important for HP financially, strategically, and tactically,” stated HP CEO, Dion Weisler, in a partner email seen by ARN.
“Together they strengthen our core A4 products, accelerate our quest to disrupt and rein $US55 billion A3 copier space with superior printing technology, and give us powerful technologies and tools for future innovation.”
Following the separation of Hewlett-Packard company less than a year ago, Weisler said the vendor has taken advantage of its new-found speed and agility within the market, “becoming a smaller, nimbler, more focused company”.
“While today’s moves are primarily focused on A3, I want you to know, whether you’re an HP A3 partner or not, that this is the new HP,” he explained.
“A global leader with the muscle and brains of a Fortune 100 company and the heart and energy of a startup. We promised to take swift, bold actions to seize opportunities to win in every market and every segment where we can deliver profitable growth for us and for our partners.”
For Weisler, it’s an acquisition that has “built-in momentum”.
“For the past year, we have been working closely with Samsung’s printer business to develop the A3 multifunction laser printers,” he explained. “In fact, that both companies recognised a complementary long-term fit.
“And having just accomplished one of the largest separations in corporate history, our management team is confident that we can leverage that experience to ensure a smooth integration of Samsung’s printing business into our own.”
With the vendor’s product launches and acquisition of Samsung’s printer business, Weisler said the company is building the industry’s “most complete and most secure A3 and A4 product portfolio”, providing partners an extended range of “speed, price, finishing, and performance options”.
In addition, Weisler said plans are in place to create more partner opportunities in managed services, through the announcement of a services-led business model for the vendor’s new A3 lineup.
“Contractual products from Samsung’s printer business will be accessible to our selected partners to complement the full portfolio already based on Samsung technology,” he explained.
“Transactional products from Samsung’s printer business will be fully integrated into our print portfolio and will be accessible to all of our Partner First partners.”