SEOUL, Sept 12 – HP is buying Samsung’s printer business for $1.05 billion in a move aimed at “disrupting” the dusty and stale printing industry. The deal will see Samsung’s Printing Business Unit spun out independently, with HP picking up full 100 percent ownership in the business.
The companies estimate it will take one year to close, pending the usual regulatory scrutiny, and, upon doing so, Samsung will make a reciprocal investment of between $100 million and $300 million into HP’s business. Samsung’s printer divisions employs around 6,000 people – around 1,300 of whom are in R&D – with 50 sales offices across the world and a production base that is located in China.
In addition to that business, which recorded nearly $1.8 billion in revenue last year, HP will also get its hands on a “compelling” portfolio of around 6,500 printing patents. The central aim of the acquisition is to breathe much needed new energy and ideas into the industry, though, HP said.
“Copiers are outdated, complicated machines with dozens of replaceable parts requiring inefficient service and maintenance agreements. The customers are frequently frustrated with the number of visits needed to keep copier machines functioning,” it explained.
“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,” HP President and CEO Dion Weisler added.
The announcement was made after a Samsung board meeting at which Jay Y. Lee, son of company chairman Kun-Hee Lee and its expected future leader, was nominated to the company’s board.