Last year, HP separated its business units into two, namely HP Inc, which focuses on the printer and computer business, and Hewlett Packard Enterprise, which is engaged in the software and data storage business. After this separation, HP was increasingly moving rapidly in developing its business and products. Some time ago HP Inc. will buy Samsung’s printer business line in a deal worth USD 1.05 billion after the smartphone giant from South Korea experienced a decline in printer sales. Samsung’s board of directors approved the HP acquisition offer for its printer division operations, worth USD 1.05 billion or around IDR 13 trillion. This agreement is based on Samsung’s desire to concentrate on its core business areas.
Samsung’s printer business employs about 6,000 people in 50 sales offices globally and generated 2 trillion Korean won in revenue last year. Its largest Samsung printer manufacturing facility is located in China. About 6,000 Samsung employees will join HP, including about 1500 engineers. HP will buy a 100 percent stake in Samsung printers in its circulation business, and will also get 6,500 print patents.
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Acquiring the Samsung printer business will also strengthen HP’s capabilities for serving customers in global laser printing. In this category, the HP Printer is actually already very strong and has a mutually beneficial partnership with Canon for more than three decades. HP believes this transaction will provide new opportunities. HP also saw Samsung’s ability to manufacture a very important mechanism in laser printers known as printing machines. Samsung developed a printing machine that is used in its own laser printer. Meanwhile, HP always uses external suppliers for these components.
You could say this is a very fantastic purchase cost for HP for a business unit. Even the biggest value acquisition HP has ever made. HP itself estimates that this transaction will be completed in only about one year. In part of this transaction, Samsung will also invest up to USD100 million – USD300 million for HP’s business. HP believes that the printer business needs a refresher and this is a good time. According to HP, “Printer technology, in general, is out of date. Not many significant changes. Customers often feel frustrated because large printers and copier machines often experience disruption, high maintenance costs, and large enough electricity consumption. But, we believe that HP will be able to revive this sector by making new breakthroughs that benefit printer users. “
Following this agreement, HP will develop better technology for its A3 laser printer in the enterprise community and development of its future printer technology line in the ink-based HP PageWide. The Samsung company said it would continue to sell printers in Korea under the original Samsung brand, but once they sell the patents production will be sourced from HP. Let’s just wait for what innovations HP printers will develop from this acquisition.