HP to buy Samsung's printer business
HP will acquire Samsung's printer division to help target photocopier market
HP is set to buy Samsung's printer business for $1.05 billion.
Samsung plans to turn its printer division into a separate company, and then sell it to HP in November.
HP said that the acquisition will give it access to Samsung printers that it will position as replacements for photocopiers. HP said that the $55bn copier industry is reliant on old technology and inefficient service models, and that customers would be better served with modern multifunction printers.
HP plans to target this sector, in part with Samsung multifunction laser printers that can print in paper sizes up to A3.
The printer division makes up only a small part of Samsung's business, creating sales of $1.8bn in 2015. Along with the printing devices, HP will also gain 6,500 printing patents and 6,000 personnel.
Under the deal, Samsung will source printers from HP and continue to sell them under the Samsung brand in Korea.
"When we became a separate company just ten 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."
Some analysts suggested that the move was intended to reduce HP's reliance on Canon, which provides all HP's laser printer mechanisms and cartridges, but HP said in a statement that the deal "will provide new opportunities to further strengthen and accelerate this highly valued relationship".