The acquisition fits with HP's 'connected services' strategy of building out its professional printing business, creating bundles of hardware and services that allow the company to better compete with Dell and low cost providers from Asia.
The company also unveiled an in-store photo printing kiosk in February that lets consumers print their digital pictures at retail stores.
Vyomesh Joshi, executive vice president of HP's imaging business, touted Silverwire's customer base and technology to connect and integrate photo equipment in retail stores.
"We expect that this acquisition will allow HP to compete more vigorously in the retail photo printing market, and position us to become a leading provider of digital integration services worldwide," he said.
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