September 13, 2016
The OEMs agreed on the deal yesterday, with HP Inc acquiring Samsung’s printing business for $1.05 billion (€932.8 million). The Recycler reported late last week that Samsung was mulling over a $1.8 billion (€1.6 billion) sale to HP Inc, after the Seoul Economic Daily outlined Samsung was “considering selling its printer business” as it “shifts focus to its core businesses”.
HP Inc then confirmed it would buy the printing business and will “inherit 6,000 Samsung employees once the deal closes”, which the OEM expects “will be within 12 months”. The OEM added that the deal “aims to reinvent and replace service-intensive copiers with superior multifunction printing”, and “accelerates [its] disruption” of the copier segment. The “definitive agreement”, HP Inc added, will help it to “reinvent” the copier industry, which “hasn’t innovated in decades”.
HP Inc added that with copiers being “outdated, complicated machines” requiring “inefficient service and maintenance agreements”, customers are “frequently frustrated”, and as such it will be replacing copiers with MFPs, with Samsung’s “formidable portfolio” of A3 MFPs set to be integrated with HP Inc’s PageWide technology for a “breakthrough portfolio” of devices. The deal is also “the largest print acquisition in HP’s history”, and “accelerates its growth opportunities” in copiers.
The OEM also stated that the deal “strengthens its leading laser printing portfolio” and “paves the way for future printing innovation”, as well as creating “new avenues for growth and greater profitability”. Samsung’s printer business also brings HP Inc a “compelling intellectual property portfolio” of 6,500 printing patents and a “world-class workforce” of 1,300 researchers and engineers. Samsung will also make an investment in HP Inc of $100 million (€89.3 million) to $300 million (€267 million).
On the Canon relationship, HP Inc added that it was “confident” that its “strong, mutually beneficial partnership” will “provide new opportunities to further strengthen and accelerate this highly-valued partnership”. Fujio Mitarai, Chairman and CEO of Canon, commented that “HP and Canon have long discussed print innovation to create customer value in business printing and in the growing MPS market. This transaction will further evolve our collaboration and bring about growth for both of our companies”.
Oh-Hyun Kwon, Vice Chairman and CEO of Samsung, added that “HP Inc has been a valued partner and customer of Samsung. We can now leverage our combined capacity for innovation to further enhance the value of our relationship”. Samsung, for its part, stated that the separate company will be created as of 1 November, and that it will source printers from HP Inc and “continue to market in Korea under the Samsung brand”.
Dion Weisler, President and CEO of HP Inc, commented “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 $12 trillion (€10.6 trillion) traditional manufacturing industry, and now we are going after the $55 billion (€48.9 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.”
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