HP is buying Samsung’s printer business for $1.05 billion read more at here www.spinonews.com/index.php/item/829-hp-is-buying-samsung-s-printer-business-for-1-05-billion

The personal computer and printing giant HP Inc. agreed to buy Samsung Electronics Co.’s printer business for $1.05 billion. Samsung’s laser printing technology will be crucial for HP as it attempts to enter the copier machine market, which requires machines that can quickly print multiple copies.

With the acquisition, HP gets a big printing presence in Asia, as well as Samsung’s laser printing technology and around 6,500 printing technology patents. HP will get 6,000 new employees once the deal is closed.

As part of the agreement, Samsung has committed to buying $100 million to $300 million worth of HP shares on the open market after the acquisition closes, the companies said.

According to the reports Samsung is trying to focus on its core smartphone, television, and memory chip businesses.  Consumers and businesses continue to print less while shifting their attention to digital documents.  And other big companies like Epson, Canon giving a tough competition.  After considering such issues Samsung changed its business plan and trying to focus more on its smartphone, television, and memory chip businesses.

 

By acquiring Samsung printing business, HP would eliminate one of its printer rivals and gain a possible boost in revenue to offset declines in its printing business. HP's printing business dropped 16% year-over-year to $13.7 billion.  Buying Samsung's Printing Business will improve their business.