HP buying Samsung printer business in deal worth $1.05b

NEW YORK — HP is buying Samsung Electronics Co.'s printer business in a transaction worth $1.05 billion. HP Inc. said Monday that it is the largest print acquisition in the company's history and will help it go from traditional copiers to multifunction printers. HP also said the deal will strengthen its position in laser printing, which it established with Canon. Samsung's printer business includes more than 6,500 printing patents. The deal is expected to close within a year. Last week Hewlett-Packard Enterprise Co. announced that it would spin off a big chunk of its business software line-up in an $8.8 billion deal with Micro Focus International PLC. Last year CEO Meg Whitman split HP's operations focused on selling business technology products from its personal computer and printer operations. At its height, the combined HP generated more than $100 billion annual revenue. HP's stock fell nearly 3 percent in premarket trading. For Suwon, South Korea-based Samsung, the divestment is part of a longer-term push to focus on more high-growth areas. “The sale of printers makes perfect sense because the world of paper is going away,” said Mark Newman, an analyst at Sanford C. Bernstein in Hong Kong. “Printers don’t have much future. It’s all going to be screens and Samsung is the biggest display maker in the world.” The printer deal is expected to close in about 12 months and is subject to approvals, the companies said. HP will receive more than 6,500 patents from Samsung, Lores said, adding to its intellectual-property lineup. Samsung’s laser capabilities are more suited for the large copiers that are built for heavy use at company offices. HP relies on Canon Inc. for key laser technology in some of its printers. Deal activity in the printing sector is picking up. Earlier this year, Lexmark International Inc. agreed to be acquired by an investment consortium led by Apex Technology Co. and PAG Asia Capital in a transaction that values the company at $3.6 billion.