HP has decided 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).
The two companies announced their agreement today with the sale likely to take place after Samsung spins off its printer business on 1 November. Samsung's printer business currently has 6,000 employees along with 50 global sales offices and production facilities in China. In 2015 alone, it earned revenues of $1.8 billion.
Under the terms of the agreement, HP will acquire a 100 per cent stake in the spun off printer business along with all of its assets overseas. Samsung however, will continue to sell printers in its home country of South Korea under its own name but HP will be responsible for manufacturing them.
In addition to the copier business, HP will also gain 6,500 printing patents and a number of employees with experience in printing related technologies. Of the 6,000 employees who will be joining HP, 1,300 are researchers and engineers familiar with laser printing, imaging electronics, printer supplies and accessories.
According to HP's president and CEO Dion Weisler, this deal would not have been possible had the company not split from its enterprise business, HPE, last year.
He also offered further insight into how HP plans to utilise Samsung's printer business: “When we became a separate company just 10 months ago, it enabled us to become nimble and focus on accelerating growth and reinventing industries. 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.”
“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.”
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