HP is buying Samsung's printer business for $1.05 billion. Under the terms of the deal, Samsung's printing business unit would be spun out. HP would pick up 100 percent stake in the unit. The deal is likely to take about a year to be finalized.
HP claims that the acquisition would help the company to "disrupt and reinvent" the copier industry, which "hasn't innovated in decades." The deal is HP's biggest acquisition in the print industry. Samsung would continue to sell printers under its brand in Korea. However, it will procure the printers from HP.
According to The Verge, Samsung's printer unit employs about 6,000 people. The unit has its production base in China and 50 sales offices across the globe. It generated nearly $1.8 billion in revenue last year. Under this deal, HP would have access to about 6,500 printing patents. The deal also involves Samsung making a reciprocal investment in HP, which is likely to be in the range of $100 million to $300 million.
"Copiers are outdated, complicated machines with dozens of replaceable parts requiring inefficient service and maintenance agreements." The company seeks to change the landscape of the industry. HP President and CEO Dion Weisler said that HP is "going after the $55 billion copier space," HP stated.
Tech Crunch reported that the announcement was made after a Samsung board meeting which saw Jay Y. Lee being nominated for the company's board. Lee is considered to be the successor of company chairman Kun-Hee Lee, who is currently hospitalized. Jay Y. Lee currently holds the position of vice chairman and is the son of the current chairman.