HP Inc. has announced the completion of its acquisition of Samsung Electronics Co., Ltd.’s printer business in a deal valued at $1.05 billion.
HP says that A3 represents its largest growth opportunity in business printing. The combination with Samsung expands HP’s portfolio, accelerates its ability to disrupt the $55B A3 copier segment with superior multifunction printing technology, and strengthens its leading A4 laser printing business, according to HP. Samsung also brings intellectual property of more than 6,500 print patents and a workforce of nearly 1,300 researchers and engineers with expertise 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,” said Dion Weisler, president and CEO, HP Inc. “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.
With Samsung, HP claims it now offers the industry’s strongest portfolio of A3 multifunction printers that deliver the simplicity of printers with the high performance of copiers. The fully integrated portfolio, including next generation PageWide technologies, reportedly offers opportunities to grow managed print and document services as sales models shift from transactional to contractual. Customers will have greater choice, reliability and uptime, with lower cost of ownership and more affordable color, noted HP. The combined portfolio also features security such as HP Connection Inspector, HP Sure Start, Run-time intrusion detection and whitelisting.
HP will provide 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.
Now that the acquisition has been finalized the integration begins. And that’s going to be the big challenge, especially on a scale like this. We won’t speculate as to how smoothly or not that’s going to go, however, what can’t be overlooked is amidst all the hype in the above press release is that HP is a much stronger company today with all the Samsung assets included than it was yesterday. What we need to be cautious about is HP’s claim that A3 represents its largest growth opportunity in business printing. While that may be true for HP, we remain curious as to where that growth is going to come from in an A3 world where clicks are on the decline and at what other A3 OEM’s expense? A3 aside, we believe the long-term impact for HP as the result of this deal will largely be positive from both a technology and a revenue perspective.
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