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HP Inc is to acquire Samsung’s printer division for just over $1bn as it targets the copier sector, which it believes as a whole is worth $55bn in revenue.
This is the largest print acquisition in HP’s history.
HP Inc said the copier industry had been neglected and that there was an opportunity to bring disruption.
“Copiers are outdated, complicated machines with dozens of replaceable parts requiring inefficient service and maintenance agreements,” said HP Inc. “Customers are frequently frustrated with the number of visits needed to keep copier machines functioning.”
HP Inc aims to replace copiers with multifunction printer (MFP) technology.
The strategy follows the division of HP into two separate companies in November 2015, when the printing and devices business became HP Inc and the enterprise-focused organisation became Hewlett-Packard Enterprise (HPE). HP said at the time that the challenge was to create new growth opportunities.
“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 $12tn traditional manufacturing industry, and now we are going after the $55bn copier space.”
Samsung has a portfolio of A3 MFPs. HP Inc plans to integrate the Samsung printer products, including mobile-first and cloud-first user experience, with its own PageWide technologies.
Samsung’s printer business adds intellectual property and a portfolio of more than 6,500 printing patents, as well as a workforce that includes nearly 1,300 researchers and engineers.
Oh-Hyun Kwon, CEO at Samsung Electronics, said HP Inc was already a partner and customer of Samsung: “We can now leverage our combined capacity for innovation to further enhance the value of our relationship.”
The acquisition is expected to be completed within 12 months. ........ ......... ........... ........... ........... ...........