HP spends more than $1 billion to buy Samsung printer business
In a newly announced deal, tech giant HP Inc. is officially purchasing Samsung Electronics Co. Ltd's printing business. The technology merger grants HP thousands of printing patents among other benefits.
A press release said that the deal was valued at approximately $1.05 billion, and is HP's largest acquisition to date. In addition to technology rights, the transaction also grants HP access to around 1,300 personnel.
The acquisition is intended to improve both the individual companies and the printing industry as a whole by introducing new ideas and systems, the statement also said. In addition, there is a new opportunity for HP to strengthen its "strong, mutually beneficial partnership with Canon," something which has already been in effect.
Samsung CEO Dr. Oh-Hyun Kwon also referenced the importance of innovating in the context of this deal. Despite the announcement, the deal isn't officially expected to close until 12 months from now, but HP hosted a conference call for Sept. 12 specifically to discuss this.
"HP Inc. has been a valued partner and customer of Samsung," said Dr. Kwon said. "We can now leverage our combined capacity for innovation to further enhance the value of our relationship."
Samsung recently nominated Lee Jae-yong, son of incumbent chairman Lee Kun-hee, to the company's board of directors, according to the Wall Street Journal. The new boardmember's official appointment will depend on a full shareholder vote scheduled for Oct. 27. However, Lee Jae-yong has already made public and private appearances on the company's behalf as his father recovers from a heart attack.
HP has supplemented this news with a plan to specifically target the copier industry. CRN reported that the company recently introduced the A3 line of copiers, which include 16 different products and could ship as early as next spring.