HP Inc. agreed to pay $1 billion to acquire Samsung’s printer business

HP Inc. agreed to pay $1 billion to acquire Samsung’s printer business

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According to reports, US computer giant HP has agreed a transaction to take over Samsung’s $1 billion printer business.

HP said in a statement that the purchase would help it to “disrupt and reinvent” the $55 billion copier industry, a section that “hasn’t innovated in decades”.

HP is set to obtain a huge printing presence in Asia, along with Samsung’s laser printing technology and patents. The deal followed HP’s sister company selling its software business to increasing UK tech champion Micro Focus.

Last year Hewlett-Packard divided into two businesses: HP Inc, which emphases on printers and computers; and Hewlett Packard Enterprise, which sold its software business to focus on data storage.

“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, chief executive of HP Inc.

HP Inc said: “Copiers are outdated, complicated machines with dozens of replaceable parts requiring inefficient service and maintenance agreements.” Company also said that consumers were increasingly unsatisfied with broken copiers and the deal would help HP finance in better technology.

Samsung’s printer business made $1.4 billion in income last year and comprises more than 6,500 printing patents as well as nearly 1,300 staff with proficiency in laser printer technology.

HP Inc. (NYSE:HPQ) stock was down -2.91 to each $13.66, sending the company’s market capitalization around $23.15 billion. The share price has declined to 8.91 from its best level in 52 weeks and advanced to 14.82 this year. It recently traded in a range of $14.07 – 14.53. The stock ended last trading session with the price 14.07 down -3.83% from the session before. Meanwhile, shares in Samsung dropped 9% after it urged customers to hand in Galaxy Note 7 phones as they are causing risk.

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