HP Inc has agreed to purchase Samsung's printer business for over $1bn, the largest print acquisition in its history.
Describing the deal as "accelerating the disruption of the $55bn copier industry" HP Ink expects its acquisition of Samsung's tech will help it replace copiers with "superior" multifunction printer (MFP) technology.
Samsung's A3 MFPs, some of which come with as few as seven replaceable parts, will join HP's own PageWide technologies (which sprays ink using a print head that is as wide as the page) and its portfolio of laser printers which it shares with Canon.
The deal will also see HP slurp up Samsung's printer business IP portfolio, which includes over 6,500 patents and a workforce of nearly 1,300 researchers and engineers.
As sales models in the printing world shift from transactional to contractual, the acquisition is intended to provide HP with some wriggle room in bleeding revenue out of partners in the managed print services market.
Outside of the paper printing world, HP is also offering a $130,000 3D printer called the Jet Fusion 3D 3200, a market expected to be worth $16.2bn by 2020.
Dion Weisler, president and CEO of HP, said the company is focusing on growth following its creation less than a year ago: "We are doing this with 3D printing and the disruption of the $12 trillion traditional manufacturing industry, and now we are going after the $55 billion copier space. The acquisition of Samsung's printer business allows us to deliver print innovation and create entirely new business opportunities with far better efficiency, security, and economics for customers."
The deal is expected to close within a year, dependent on the typical regulatory review. After closing, Samsung will make an investment in HP, through open market equity purchases, of between $100m and $300m. ®