Samsung Printer Business
Samsung Electronics is selling off its printer business to HP of the U.S. for US$1.05 billion (1.17 trillion won). The company has made such decision because the printer industry has been gradually declining and is in the business to business (B2B) area in which it is hard to expand a share in the premium market. Samsung Electronics announced that it held a board meeting on September 12 and decided to sell its printing solution business to HP, the world’s biggest play in the sector, under a comprehensive transfer contract.
Samsung Electronics will spin off the printing business unit into a separate company as of November 1 upon the approval of shareholders, and sell a 100% stake of the newly created company and overseas assets related to the business to HP within a year. The company will continue to sell printers under its own brand in Korea, but will source them from HP.
Yoon Boo-keun, president and CEO of Samsung`s consumer electronics (CE) division, said at the briefing session for employees on the same day, “As HP thinks highly of Samsung Electronics’ printing business unit, the 10th largest in the market, we have talked over the sales deal. We have decided to sell our printing business unit today due to slumping sales.“ Samsung employees, including sales, manufacturing and research and development divisions, will join HP, except for the human resource division.
Meanwhile, Samsung Electronics announced its plan in March to target the B2B printing market in cooperation with Nuance Communications, a U.S.-based firm providing voice recognition solutions and printing services. The company also acquired Brazilian printing solutions company Simpress last year as part of the effort. However, the printer business is in the B2B area in which it is hard to increase a share in the premium market, unlike other units in the CE division. This is why Samsung Electronics has decided to sell the business unit after continuously considering its business strategies.