Computer giant HP Inc (NYSE:HPQ) has agreed a US$1bln deal with fellow electronics giant Samsung to acquire its printer business.
HP said it had been looking for the chance to “disrupt and reinvent” the US$55bln industry, which it says “hasn’t innovated in decades”.
The US company wants to replace “outdated, complicated” printers and photocopiers with ‘multi-function printer’ technology.
“The acquisition of Samsung’s printer business allows us to deliver print innovation and create entirely new business opportunities with far better efficient, security and economics for customers,” said HP chief executive Don Weisler.
Samsung’s printer business generated revenues of US$1.4bln in the last financial year and owns the rights to more than 6,500 printing patents.
HP anticipates the deal will be earnings accretive in the first full year after the acquisition completes, which should be within 12 months.
The deal comes just days after HP’s sister firm agreed to sell its software business to UK tech business Micro Focus (LON:MCRO).
Shares in HP were down 3c, or 0.26%, to US$13.92.