HP today announced a definitive agreement to acquire Samsung’s printer business in a deal valued at $1.05 billion. The company plans to disrupt and reinvent the $55 billion copier industry, a segment that hasn’t innovated in decades. The deal is being marked as the largest print acquisition in HP’s history, and is expected to accelerate growth opportunities in the copier segment.
“Copiers are outdated, complicated machines with dozens of replaceable parts requiring inefficient service and maintenance agreements. Customers are frequently frustrated with the number of visits needed to keep copier machines functioning. Today, HP is investing to disrupt this category by replacing copiers with superior multifunction printer (MFP) technology,” said HP in a press statement.
Integrating Samsung’s printer business’ products, will also include their mobile-first and cloud-first user experience.
“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.”
Samsung’s printer business will come with an intellectual property portfolio of more than 6,500 patents in printing and a world-class workforce including nearly 1,300 researchers and engineers. The deal is expected to close in 12 months pending regulatory review. Samsung has also agreed to make $100-300 million equity investment in HP.