HP Inc has locked its eyes on Samsung’s printer business after it agreed to purchase the division for US$1.05 billion.
The deal may see HP enter the cutsheet A3 production print market in commercial print currently dominated by Konica Minolta, Canon, Fuji Xerox and Ricoh.
The acquisition remains subject to regulatory approval, and is expected to close within a year. According to reports, as part of the deal Samsung has also agreed buy between US$100m and $300m in HP shares through open-market purchases.
Shortly after inking the deal, HP revealed a suite of 16 multifunction printers believed to target the market for larger A3 printers from printing giants such as Konica Minolta, Canon, Fuji Xerox and Ricoh.
HP has previously attempted to break into A3 printing; a market the supplier estimates at some US$55bn annually. The new A3 laser printers rely on Samsung’s print engine technology.
“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,” says HP CEO Dion Weisler.