HP Inc Acquiring Printing Business of Samsung
HP is it inherit more than 6,000 employees when the deal is closed, which the company expects will be within the next 12 months, said Enrique Lores the HP imaging and printing president.
Of those employees, close to 2,000 are engineers working on research and development, 1,000 are sales as well as support staff and the remainder work in manufacturing and service, said Lores.
With this acquisition, HP receives a big presence in printing across Asia, along with important technology in laser printing and close to 6,500 patents related to printing technology.
The Samsung technology involving laser printing will be important for HP as it makes an attempt at entering the market of copier machines, which requires the machines that are able print a number of copies quickly, explained HP global office printing general manager Tuan Tran.
Korea will be very important for the HP printing business moving forward, Lores said.
Last week, a newspaper in Seoul reported that South Korea based Samsung had been considering the sale of its printer business as the electronics giant was facing tough competition from its different rivals such as Canon, Epson and HP.
The Samsung divestiture is a small part of the company’s corporate overhaul that will make it able to better focus on its core television, smartphone as well as memory chip businesses.
In 2013, the electronics giant said it would be concentrating on selling printers and its printing services companies, which Samsung said was better than targeting the consumer. Samsung has never disclosed the revenue generated by its printing business.
Like a number of companies that are printer focused, HP has experienced a drop in demand for products as the consumer and businesses continue printing less while shifting attention toward digital documents.
A report released last May by the International Data Corporation said shipments worldwide of printers dropped by 10.5% year over year to just over 23,110,988 devices shipped during the first three months of 2016.
HP is the leader in printer market that keeps shrinking with a market share of 36% and more than 8.3 million machines shipped during the first quarter, which represented a drop of more than 18.6% from last year during the same quarter.
Canon is the world’s second largest printer company based in shipments. Third is Epson, followed by Brother as well as Samsung.