HP Inc. announced on their blog on 12th September that they have had a ‘definitive agreement’ to acquire Samsung Electronics printer business in a deal valued at $1.05 billion. This is the largest print acquisition in HP’s history. With the total available market (TAM) of hardcopy peripherals shrinking, this sure will help strengthen HP’s position in the market of printer business by increasing their share in the same.
Over years, Samsung has progressively built a formidable portfolio of A3 MFPs that deliver performance on point, especially in terms of power, reliability and easy accessibility. Their printer business also includes intellectual property portfolio of more than 6,500 printing patents and a workforce of nearly 1,300 researchers and engineers who hold advanced expertise in laser printer technology, imaging electronics and printer supplies to support continued innovation in print market solutions. This integration will allow HP’s next generation PageWide technologies to create a breakthrough portfolio of printing solutions with the industry’s best device, document and data security.
“When we became a separate company just 10 months ago, it enabled us to become nimble and focus on accelerating growth and reinventing industries,” said Dion Weisler, president and CEO of HP. “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.”
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, as per HP’s blog.
