Samsung’s board of directors has approved the sale of the company’s printing business to HP for $1.05bn.
“Samsung Electronics has reached an agreement to sell the entire global operations and assets of its printing business to HP,” the Korean tech giant said in a statement.
“This transaction is part of the company’s efforts to concentrate on its core business areas.”
The acquisition, which is subject to regulatory approval, is expected to close within 12 months.
Samsung has also agreed to make an equity investment of between $100m and $300m in HP through stock purchases.
HP focuses on opportunities in A3 printer market
Consumer and business electronics player HP, which evolved out of the split of Hewlett-Packard last year, makes the majority of its revenues from the supply of ink and toner for its printers.
The company is working on a strategy to move into high volume devices that can handle printing and copying for office work groups.
Overall printer product sales have been declining at HP with ink and toner sales down 18pc in Q3 as well as printer hardware sales dropping 10pc.
HP is looking to grow revenues by moving into the A3 printing business, a market dominated by Xerox and Ricoh, which it will do through acquiring Samsung’s printing assets.
This will be the largest print acquisition in HP’s history.
Samsung’s printer business brings with it a portfolio of more than 6,500 printing patents and a workforce that includes 1,300 researchers and engineers.
“When we became a separate company just 10 months ago, it enabled us to become nimble and focus on accelerating growth and reinventing industries,” said Dion Weisler, president and CEO of HP.
“We are doing this with 3D printing and the disruption of the $12trn traditional manufacturing industry, and now we are going after the $55bn 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.”
HP printers image via Shutterstock