HP Inc. Accelerates Disruption of $55B Copier Segment with Acquisition of Samsung Electronics Co., Ltd.’s Printer Business
Aims to reinvent and replace service-intensive copiers with superior multifunction printing.
Palo
Alto, Calif., and Suwon, South Korea, Sept. 12, 2016 — HP Inc. (NYSE:
HPQ), the world leader in printing, today announced a definitive
agreement to acquire Samsung Electronics Co., Ltd.’s (005930.KS) printer
business in a deal valued at $1.05 billion.
The
acquisition positions HP to disrupt and reinvent the $55 billion copier
industry, a segment that hasn’t innovated in decades. Copiers are
outdated, complicated machines with dozens of replaceable parts
requiring inefficient service and maintenance agreements. Customers are
frequently frustrated with the number of visits needed to keep copier
machines functioning. Today, HP is investing to disrupt this category by
replacing copiers with superior multifunction printer (MFP) technology.
Samsung
has built a formidable portfolio of A3 MFPs that deliver the
performance of copiers with the power, simplicity, reliability and
ease-of-use of printers and with as few as seven replaceable parts.
Integrating the Samsung printer business’ products, including their
mobile-first and cloud-first user experience, with HP’s next-generation
PageWide technologies will create a breakthrough portfolio of printing
solutions with the industry’s best device, document, and data security.
This
is the largest print acquisition in HP’s history and accelerates its
growth opportunities in the copier segment, strengthens its leading
laser printing portfolio that has been established with Canon, and paves
the way for future printing innovation. It also creates new avenues for
growth and greater profitability for partners as they expand managed
print services as sales models shift from transactional to contractual.
“When
we became a separate company just 10 months ago, it enabled us to
become nimble and focus on accelerating growth and reinventing
industries,” said Dion Weisler, president and CEO of HP.
“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.”
Samsung’s
printer business also brings a compelling intellectual property
portfolio of more than 6,500 printing patents and a world-class
workforce that includes nearly 1,300 researchers and engineers with
advanced expertise in laser printer technology, imaging electronics, and
printer supplies and accessories to support continued innovation in
print market solutions.
“HP Inc. has been a valued partner and customer of Samsung,” said Dr. Oh-Hyun Kwon, vice chairman and CEO of Samsung Electronics Co., Ltd. “We can now leverage our combined capacity for innovation to further enhance the value of our relationship."
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.
“HP and Canon have long discussed print innovation to create customer value in business printing and in the growing MPS market,” said Fujio Mitarai, chairman and CEO of Canon Inc. “This transaction will further evolve our collaboration and bring about growth for both of our companies.”
The
acquisition is expected to be accretive in the first full year
following closing, with cost synergies and a strong financial model. The
transaction is expected to close within 12 months pending regulatory
review and other customary closing conditions. After closing, Samsung
has agreed to make a $100 million to $300 million equity investment in
HP through open market purchases.
About HP Inc.
HP Inc. creates technology that makes life better for everyone,
everywhere. Through our portfolio of printers, PCs, mobile devices,
solutions, and services, we engineer experiences that amaze. More
information about HP Inc. is available at http://www.hp.com.
About Samsung Electronics Co., Ltd.’s printer business
Since
1982, Samsung Electronics Co., Ltd.’s printing business has been
exploring and delivering digital revolution to the printing industry
with solutions that transform workplaces into smart offices. More
information about Samsung’s printer business is available at http://samsungprintingsolutions.com/ .
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