Actionable news
All posts from Actionable news

HP Buys Samsung's Printer Business

The leader in printing believes the acquisition positioned itself to reinvent and disrupt the copier industry that is valued $55 billion. Following the customers' dissatisfaction on number of factors, the company is keen to replace copiers with superior multifunction printer technology.

The firm thinks Samsung has built an alarming portfolio of A3 MFPs delivering the performance of copiers with the power, simplicity, reliability and ease-of-use of printers. All these would come by replacing seven parts. HP disclosed that its next-generation PageWide technologies would establish a breakthrough portfolio of printing solutions with the addition of Samsung printer business' products.

The company's President and CEO, Dion Weisler, said, "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 company expects the acquisition to be accretive in the first full year after the closing, with cost synergies and a strong financial model. Once the transaction is closed, Samsung agreed to make a $100 - $300 million equity investment in HP through open market purchases.

HPQ shares fell $0.41, or 2.91 percent, to $13.66 in pre-market trading on Monday.

© 2016 Benzinga does not provide investment advice. All rights reserved.