HP Inc. an American technology company, has agreed to buy Samsung’s printer business for $1.05 billion (£788 million) in an attempt to “disrupt” the $55bn photocopying industry. As part of the 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.
- 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. The former is focused on consumer products, the latter on enterprise.
- Samsung’s printer business will allow HP inc to take control of the potentially lucrative professional and office printing market. HP is market-leader in the desktop printer business, but as PC users print fewer pages revenues continue to fall. Last month the firm reported an 18 per cent year-on-year drop in revenue from ink and toner supplies for the third quarter. Printer hardware sales fell ten per cent.
- after deal HP announced 16 new multifunction printers for the A3 printer-copier market. HP’s move to buy Samsung’s printer business also sees it pick up the firm’s printing engines, something it previously relied on external suppliers for. The A3 market is currently dominated by Xerox and Canon.