HP Announces Closure of $1B Samsung Acquisition
Two Print Industry Giants Face “Day One” Together
On November 1, 2017, just shy of 14 months since the news first broke, HP Inc. has completed the acquisition of Samsung’s printing business. The day of completion, known as “Day One,” represents the full integration of the two companies into one printing giant, combining HP’s market leadership in quality, reliability and security with the long history of innovation and R&D investment synonymous with the Samsung brand.
HP + Samsung: A Winning Combination
As the two companies become one, HP Inc. assimilates the South Korean company’s portfolio of single-function and multifunction printing technologies, strengthening HP’s A3 copier position and its A4 laser printing business. Also transferred to HP are the more than 6,500 print patents and an R&D team of nearly 1,300 with expertise in laser technology, supplies, and accessories.
In an analyst call, Tuan Tran, General Manager and Global Head of Office Printing Solutions at HP Inc., gave a brief overview of the company’s strategy going forward. “We brought on close to 6,000 employees and with them a whole lot of IP,” Tran said. “Here in Korea, there is a lot of cause for celebration as our teams combine.”
HP plans to continue with laser-like focus in their bid to take share from the $55B copier market, delivering innovation and business efficiency, thanks to the Samsung A3 portfolio and a network of partners. Tran noted that HP will also continue fortify the A4 printing business with the strength of both the HP and Samsung brands.
“We will continue to provide supplies, service, and support for the Samsung products in the market for five years,” Tran said. “And we have the right to use the Samsung brand name for two years. There are a number of products in development here in the labs in Korea that will continue to market in the near future.” After that two year period, new products will be released under the HP brand. The only exception is that they will continue to distribute printing devices under the Samsung name in Korea, due to the strength and market share of that brand.
But What about Security?
With HP’s major focus around print security, how will the Samsung portfolio integrate with HP’s class-leading security requirements? HP’s portfolio includes robust security, including HP Connection Inspector, run-time intrusion detection, self-healing BIOS, and whitelisting. HP recognizes that Samsung’s current product line has a B2C heritage and therefore lacks the high level of cybersecurity found in HP’s print devices. But Tran is not discouraged: “We’re gaining this team of extremely talented engineers, who will be tasked with understanding the need for security at the deepest level, and building in security at the silicon level.”