Samsung HP Deal: Samsung printing business to HP
Samsung HP deal for printing business has been finalized. Samsung Electronics has agreed to sell its printer business unit to US personal-computer maker HP. In the Samsung HP deal HP Inc. buy printer business for $1.05 billion (£788 million). It is an attempt to “disrupt” photocopying industry worth the USD 55 billion. As part of the Samsung HP deal, HP will swallow up 6,500 patents related to printing and Samsung’s team of 1,500 researchers and engineers. Samsung has also agreed to buy between $100m (£75m) and $300m (£225m) in HP shares through open-market purchases after the sale is completed. Dion Weisler, president and CEO of HP said:
“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 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.”
The deal is the first major move by HP since the company split itself in two in November 2015, creating HP Inc. and Hewlett Packard Enterprises. Acquiring Samsung’s printer business will also strengthen HP’s ability to service customers in global laser printing, a category where it has enjoyed a strong, mutually beneficial partnership with Canon for more than three decades. HP is confident this transaction will provide new opportunities to further strengthen and accelerate this highly valued relationship. Dr. Oh-Hyun Kwon, vice chairman and CEO of Samsung Electronics Co., Ltd said:
“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.”
The transaction of Samsung HP deal is expected to close within one year. The time will depend on appropriate regulatory approvals. Samsung also agreed to buy between $100 million and $300 million in HP shares through open-market purchases after the business sale is completed. Samsung printing business will be owned by the HP Inc.
Source: HP official Blog