HP has announced that it will be acquiring Samsung's printer business in a deal worth $1.05 billion, roughly Rs 7,030 crores. The US-based company says that it will use the purchase to disrupt and reinvent the $55 billion copier industry. As part of the deal, 6,500 patents and 1,500 researchers and engineers will move from Samsung to HP.
In a press release, HP said that the deal will boost growth opportunities in the copier market. Samsung on the other hand said that selling the printer division was part of the brand's efforts to concentrate on its core business areas.
The Korean tech giant will spin off its Printing Business unit into a separate company on November 1 st, and will sell a 100 percent stake of the newly created entity and overseas assets related to the business to HP.
As part of the deal, Samsung will source printers from HP and continue to sell them in Korea under its own brand name. Its deal with HP is expected to close within one year, subject to the appropriate regulatory approvals. The sale of the printing business was approved by the board, but remains subject to its shareholder's approval in October.
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