Hewlett Packard (HP) has completed its acquisition of Samsung’s printer business in a deal worth $1.05 billion.
With the acquisition approved today by the Chinese government, the company is set to disrupt the $55 billion A3 copier market while strengthening its current A4 laser printing business.
Samsung will bring a broad portfolio of intellectual property to the acquisition including more than 6,500 print patents and a workforce of nearly 1,300 researchers and engineers specialising in laser technology, imaging electronics and supplies and accessories.
“As we ignite a renaissance in printing, we’re thrilled to bring together the industry’s best and brightest talent,” says HP’s CEO and president Dion Weisler.
“Together, we will build on more than 30 years of print leadership to accelerate our strategy, disrupt new market opportunities, and provide our customers and partners with unique and highly innovative print solutions.”
The acquisition results in a combined portfolio of A3 multifunction printers, next generation PageWide technologies, and security components including HP Connection Inspector, HP Sure Start, Run-time intrusion detection and whitelisting.
The fully integrated portfolio offers opportunities to grow managed print and document services as sales models shift from transactional to contractual.
HP will provide more financial guidance on its Q4 2017 earnings call. As part of the agreement, Samsung will be making a $100 million to $300 million equity investment in HP through open market purchases.