In a blog post, Samsung’s Printing Business Unit laid out details on what it expects from its forthcoming acquisition by HP Inc. for $1.05 billion, a deal that HP Inc. expects to complete in the second half of 2017.
Samsung has now begun the process of merging its Printing Business Unit with HP Inc. by creating a separate spin-off company – called S-Printing Solution Company – for its printing activities. It will sell a 100-percent stake in this company and its overseas assets to HP Inc. after it gains regulatory approval.
Samsung notes that it’s enjoyed a a long-standing printing relationship with HP, and that this move is seen as “a necessary evolutionary step for both parties. The printing market is currently stagnant, and most experts agreed it needed stimulation. The deal, it is hoped, will help usher in a new age for the printing market.”
Samsung notes that “A deal of this sort cannot be done overnight – Samsung and HP both have extensive product lineups, existing service agreements, sophisticated networks of partners and numerous affiliates.”
However, Samsung states that both Samsung and HP have agreed upon a road map that will allow the companies, their customers, and their partners “to ease smoothly into the new era.”
Kiho Kim, president of Samsung’s Printing Solutions Business, explains that timing is everything, noting: “The industry has become ever more challenging, so now is the right time for us to join forces with HP. Strengthening our partnership will help us find new growth momentum.”
With Samsung and HP now set to integrate their technology and offerings, executives at both companies say that customers “will be the main beneficiaries.”
Samsung to Continue to Sell Printing Products under Samsung Brand Name
According to Samsung’s Kiho Kim, president of Samsung’s Printing Solutions Business, after HP acquires the S-Printing Solutions Company (Samsung’s Printing Solutions Business), S-Pritnting Solution Company will continue to sell products under the Samsung brand name for up to two years, and for up to five years for supplies.
Samsung and HP will operate as two separate companies until the second half of 2017, at which point they will become one company: HP Inc. Samsung will continue to provide products until the second half of 2019, and supplies and services until 2022, at which point all printing products and services created will be sold under the HP brand name, and as part of HP’s operations.
Business as Usual
Samsung and HP will “continue to do business as usual” until the deal is finalized, Samsung plans to further develop its core strategy during the first half of 2017, that is, advancing “smart-office innovation.”
Kasey Kim, Samsung Printing Solutions’ head of research and development, says that Samsung’s Smart UX Center, an Android-based interface that allows users to customize their printers using downloadable apps and widgets, will also be improved. He explains, “We are going to keep looking at things from our customers’ point of view and put their benefits first. Customization is important to our customers, so we will look at ways to provide more options in that regard. This may come in the form of an enhanced UX, one that will be even more convenient and innovative.”
Mark Ash, head of Print for Samsung UK and Ireland, commented: “In the coming months, we are looking forward to bringing new technology into the market. We have seen growth in managed print services this year, especially with our Android devices. We expect this trend to continue.”
Meanwhile, Samsung says “ripples of the deal with HP” have already been felt across the world, “with partners and customers already expressing their enthusiasm.” Mike Von Lier, director of Samsung South Africa’s Enterprise Business Division, commented: “The merger of these two companies will create a very powerful brand in the global market – a dominant force. The reaction from our channel partners has been very positive.”
Samsung also states that “business has also picked up in many other areas, evidence that the announcement may have already provided the industry with a shot in the arm. Samsung has continued to win contracts from diverse verticals in Europe, North America and Asia.”
Although the market is still “getting to terms with the implications of the deal,” Samsung says that its executives “are confident that customers will reap the benefits if they stay with the company as it continues its journey to revolutionize the printing market. And those benefits will be felt both in the short-term under Samsung, and in the long-term, under the HP banner.”
- November 2016: New Samsung Smart MultiXpress M5360RX A4 MFP with Faster Touch Screen, Smart UX Apps
- November 2016: New Samsung Update Enables Samsung Galaxy Users to Print to Millions of Printers
- November 2016: HP Inc. Marks 1st Anniversary: Looks Back on its 3D Printers, Samsung Acquisition, Copier-Market Disruption
- November 2016: Samsung Forms ‘S-Printing Solution’ Company Prior to Sale to HP; Compensates Samsung Employees for ‘Job Security’ Issues
- October 2016: Canon Discusses Implications of HP’s Acquisition of Samsung Printer Business
- September 2016: IDC: HP’s Acquisition of Samsung’s Printing Group Will Break Hold of Fuji Xerox, Canon, and Ricoh in China
- September 2016: Samsung Board Approves Sale of Printer Business to HP; Will Continue to Source Printers from HP
- September 2016: HP Set to Purchase Samsung’s Printer Group for $1.05 Billion As it Prepares for Assault on Copier Market