HP Inc has agreed to acquire Samsung’s printer business in a deal worth $1.05bn. Samsung said that the company will spin out the printer business as a separate entity from 1 November, before selling the entire unit to HP.
The deal will see HP take on 6,500 printing patents, and 1,300 researchers and engineers with expertise in laser printer technology, imaging electronics and printer supplies and accessories.
HP will also take control of a production base in China and 50 sales offices worldwide, giving the firm a bigger presence in South Asia, including China and South Korea.
As part of the deal Samsung will still sell printers under its own brand in South Korea, sourcing them directly from HP Inc.
“HP Inc has been a valued partner and customer of Samsung,” said Dr Oh-Hyun Kwon, CEO of Samsung Electronics.
“We can now leverage our combined capacity for innovation to further enhance the value of our relationship."
HP Inc CEO Dion Weisler added that the deal will allow the company to push forward with its goal of becoming the number one player in the printer market.
“When we became a separate company just 10 months ago, it enabled us to become nimble and focus on accelerating growth and reinventing industries,” he said.
"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 12 months subject to the usual regulatory oversight.
The move to buy Samsung's assets is in stark contrast to Hewlett Packard Enterprise, which last week sold a huge chunk of its software portfolio to UK firm Micro Focus in a deal worth $8.8bn.
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