Hewlett-Packard has agreed to buy Samsung's printer business for $1.05 billion.
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As of Nov. 1, Samsung will spin off its Printing Business Unit—with 6,000 employees and 50 global sales offices—into a separate company, then sell a 100 percent stake to HP Inc. Samsung will source printers from Hewlett-Packard and continue to peddle branded goods in Korea.
The acquisition is meant to help HP "disrupt and reinvent" the $55 billion copier industry, while allowing Samsung to focus on its core businesses.
With a smartphone camera in every pocket and digital collaboration in every office, copiers have gone the way of the dodo. Which is why HP wants to replace the bulky, finicky machines with multifunctional printer (MFP) technology. Citing Samsung's "formidable portfolio" of MFPs, HP intends to integrate its new partner's products—including mobile-first and cloud-first user experience—with its own next-gen mechanics.
Nearly two years ago, HP announced plans to split into two publicly traded companies: Hewlett-Packard Enterprise (infrastructure, software, services) and HP Inc. (personal systems and printing). Once the transaction was completed in November, HP Inc. got to work developing other markets like copiers, graphics printing, and commercial mobility, as well as 3D printing and augmented/virtual reality.
"When we became a separate company just 10 months ago, it enabled us to become nimble and focus on accelerating growth and reinventing industries," HP CEO Dion Weisler said in a statement. "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."
The acquisition is expected to close within 12 months, after which Samsung agreed to make a $100 million to $300 million equity investment in HP through open-market purchases.