HP’s Acquisition of Samsung is Good for Canon Too

The rumors late last week caught many by surprise, but within days, HP now says it will acquire Samsung’s printer business for US$1.05 billion.

Despite Reuters reporting the South Korean electronics giant had a meager 4% of the global printer market, it is still ranked in the top 5 along with HP, Canon, Epson and Brother. The top 5, between them have over 90% of the global market. Now the top 4 will own this market

HP Inc’s President and CEO, Dion Weisler has been eyeing Samsung with the intention of shaking up the $55 billion copier industry. Weisler wants to replace copiers with superior multifunction printer (MFP) technology. Samsung has developed a range of A3 MFPs that can deliver all the functionality of copiers with the simplicity and ease-of-use of offered by MFPs. Samsung will enable him to do that.

“When we became a separate company just 10 months ago, it enabled us to become nimble and focus on accelerating growth and reinventing industries,” 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 deal is expected to close within the next 12 months. According to Enrique Lores, president, Imaging & Printing, “Until the close of the deal we will leverage a commercial agreement to start building products with Samsung technology under the HP brand.”

According to HP’s press release, Samsung owns more than 6,500 printing patents. Its 1,300 researchers and engineers have advanced expertise in laser printer technology, imaging electronics, and printer supplies and accessories to support continued innovation in print market solutions. Just what HP needs.

HP’s long standing relationship with Canon is not ignored either. According to the statement, Canon will benefit from this acquisition as well. “This is the largest print acquisition in HP’s history and accelerates its growth opportunities in the copier segment, strengthens its leading laser printing portfolio that has been established with Canon.” The chairman and CEO of Canon Inc, Fujio Mitarai, is quoted as saying, “HP and Canon have long discussed print innovation to create customer value in business printing and in the growing MPS market. This transaction will further evolve our collaboration and bring about growth for both of our companies.”

Samsung Electronics Company’s vice chairman and CEO,  Dr. Oh-Hyun Kwon, responded, “HP Inc. has been a valued partner and customer of Samsung. We can now leverage our combined capacity for innovation to further enhance the value of our relationship.”

In another announcement, HP introduced an expansive line of powerful A3 MFPs utilizing Samsung technologies in both laser and inkjet. Jon Flaxman, COO of HP Inc said it included 16 new next-generation HP PageWide and LaserJet A3 multifunction printers. He wrote to channel partners saying,  “With today’s product launches and the agreement to buy Samsung’s printer business, we are building the industry’s most complete and most secure A3 and A4 product portfolio, giving partners a full range of speed, price, finishing, and performance options. But we’re not just giving you more printers to sell; we’re creating the best all-around, end-to-end value proposition, including the industry’s best customer service experience.”

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