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HP Inc.HPQ -3.83 % agreed to buy Samsung Electronics Co.SSNHZ 0.00 % ’s printer business for $1.05 billion, a deal designed to help the Silicon Valley company expand into high-volume devices that handle printing and copying for office work groups.

The transaction, which is subject to regulatory approval, is expected to close within 12 months, the companies said Monday. After it is completed, Samsung has agreed to make an equity investment of $100 million to $300 million in HP through open-market stock purchases.  read the rest here

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Here's something I picked up on alerts tonight:

HP Inc. CEO Dion Weisler started Monday with a bang.

His company, a giant in personal computer and printing, said it would buy Samsung’s printer business for $1.05 billion. Weisler’s hope is that the deal would help HP hpq better compete in the copy machine market and help offset declining sales of printers.

HP said Samsung’s printing business brought in $1.8 billion in sales for its fiscal 2015. This number is just a fraction of HP’s overall printing business, which brought in $21.2 billion in 2015, an 8.5% drop from 2014. Still, HP believes that the Samsung deal will help it be more competitive in a tough printer market.

In an interview with Fortune on Monday, Weisler explained his rationale for the acquisition and how he believes it will give the struggling HP Inc. the momentum it needs. Here’s an edited version of the talk with Weisler:

Fortune: What’s the big takeaway from this billion-dollar deal?

Weisler: What we’re doing is disrupting an outdated, old $55 billion copier market with superior multi-function printing, and that’s the core takeaway. We have low market share here, we’ve acquired more than 6,500 patents, 1,300 of the best engineers in Korea along with other folks around the world. Our ability now to enter into this space and disrupt it is just fantastic.

How long have you been planning this acquisition?

The genesis here is that we began this journey with Samsung when we declared back at our security analyst meeting [last September] that we would become serious about getting into the A3 copier space [A3 generally refers to a paper size of 11″ x 17″] . So we looked at the entire market to find technology that could disrupt traditional copiers. We started working with Samsung and the more we got into it, the more we understood the value of the their disruptive technology, and the sheer number of highly relevant patents that they’ve created in a very short period of time.

When I think of other disruptive technology, I can’t help but think of 3D printing. Should we be expecting more HP acquisitions in the 3D printing space?

Well, 3D printing is, of course, an entirely new category [HP showed off its new 3D printers earlier this summer]. We are incredibly excited by our multi-jet fusion technology—we think it’s game changing. It’s a real stand out for plastics, short-run production, and frankly in the future when the cost of materials comes down, for long-run production as well as traditional prototyping. We have other materials in the wheelhouse and we see a road to [3D printing] ceramics in parts.

The acquisitions we make will always be on a returns-based framework for our shareholders, and we won’t buy companies for share-sake—we will buy technologies.

Are there certain technologies that you feel will augment your current 3D-printing technology?

We look at all sorts of technologies all the time. We did a very small acquisition about six weeks ago for 3D-printing scanning software and hardware from David [Germany-based scanning software company David Vision Systems]. We constantly scout Silicon Valley and we constantly scout Israel with more than 5,000 startups in the country.

Tell me how pulling off a deal of this size was easier since HP split from Hewlett Packard Enterprise hpe in November. HPE appears to be selling off parts of its business while HP just made a big acquisition.

I’m not going to comment on Hewlett Packard Enterprise. We separated from each other in order to propel the companies forward, and I think the separation has enabled us to run at a much faster pace, to innovate faster, to change our channel [reseller] programs, and to make these kinds of acquisitions.

When we wake up everyday, all we think about is printing and personal systems. We can reinvest back in this business. In the past, we were all competing for those very precious investment dollars.

How do you plan to blend together the two different company cultures of HP Inc. and Samsung?

Of course we are a global company today. We have representation in Korea as we do in almost every other country on the globe. We don’t discount the need for cultural integration.

Personally, I’ve worked in Asia for more than ten years, and I have managed Korea for more than ten years. I have a very good understanding of the culture there. What’s amazing to me are the similarities between Samsung and HP— they are both very engineering-rich organizations. Culturally there’s a common thread between the DNA of HP and the DNA of Samsung. There will be work to do with cultural integration. It is something I will personally take control of.

Here's the official release:

HP Inc. Unleashes Next Generation A3 Printing Portfolio to Disrupt $55B Copier Segment



Delivers Performance, Security, Serviceability and Affordable Color to Reinvent Business Printing



BOSTON, MA--(Marketwired - Sep 12, 2016) - HP Inc. (NYSE: HPQ), the global leader in printing, today introduced an expansive line of powerful A3 multifunction printers (MFPs) designed to disrupt the traditional $55 billion A3 copier category. Visit the online press kit here.

Earlier today, the company announced a definitive agreement to acquire Samsung Electronics Co., Ltd.'s printer business in a transaction valued at $1.05 billion, the largest print acquisition in HP's history. Both announcements were made at the beginning of HP's Global Partner Conference.

Highlights of HP's A3 MFP technology breakthroughs include:

  • 16 new next-generation HP PageWide and LaserJet platforms, bringing innovation to the copier segment
  • World-class print security across devices, documents and data
  • Advanced monitoring based on cloud and big-data analytics to predict service and supply needs
  • Affordable color to drive adoption and economics

For decades, the copier category has lacked the disruptive innovation needed to drive service efficiency, protect against security breaches and deliver cost-effective color. Today, HP is changing this with a next-generation portfolio of A3 MFP printing solutions that deliver the simplicity, reliability, serviceability, and security to transform business printing.

With today's launch and new channel programs, HP can now deliver the industry's most advanced lineup of A3 MFP and A4 laser print solutions for the office that reflects the ongoing industry transition to everything as a service and contractual versus transactional sales.

"The complexity of traditional copiers makes repair and maintenance too inefficient for our partners and customers," said Enrique Lores, president, Imaging & Printing, HP Inc. "By leveraging our superior printing technology, we can change the status quo with next-generation A3 multifunction printers that improve the overall customer and partner experience while also serving as a springboard for growth in managed print and document services. This is what we mean by reinventing printing."

Next generation A3 multifunction printers

HP's full portfolio of A3 MFPs -- including three PageWide platforms and 13 LaserJet platforms -- will be available as 54 different SKUs with a range of finishing options, such as in-cave stapler stacker, hole punch, high capacity staple / stack and booklet makers, to provide the strongest customer experience. By providing a broad range of device options, HP is providing channel partners robust possibilities and pricing flexibility to meet the needs of their customers.

The HP PageWide Enterprise and Pro platforms will make color affordable, along with best-in-class print speeds and lower energy consumption than in-class laser devices.1, 2 The simple architecture of HP PageWide -- with only three components that may need replacing -- will help lower servicing costs for channel partners. The single and multifunction devices will have print speeds ranging from 40 ppm to 60 ppm (up to 80 ppm in General Office mode). The HP PageWide Pro devices will be available beginning in spring 2017 while the HP PageWide Enterprise devices will be available in fall 2017.

The HP LaserJet Managed MFPs will be available as multifunction devices, with color or monochrome printing and speeds ranging from 22 ppm to 60 ppm. The new LaserJets will have long-life components, fast repair times, and will be available beginning in spring 2017.

HP Smart Device Services

The company is also introducing HP Smart Device Services, a set of cloud tools and device-based sensing capabilities, designed to dramatically enhance the service experience. It monitors and diagnoses many service needs to minimize downtime and cut costs. For example, the service can anticipate parts servicing before the part fails and avoids premature ink and toner replacement.

Smart Device Services is compatible on HP printers and MFPs with FutureSmart, introduced in 2012, including the new A3 PageWide and LaserJet devices. As such, Smart Device Services will enhance service efficiency on partners' fleets and improve uptime on customers' devices. It will be available to qualified channel partners at no additional cost for all contractual devices using HP Original supplies.

World class printer security

Print security is a key consideration in the engineering of the new HP A3 MFPs. Customers want to protect their intellectual property and their customers' confidential information. The HP PageWide and LaserJet Enterprise devices feature industry-leading embedded security features including Sure Start, run-time intrusion detection, and whitelisting, making them the world's most secure printers.3 The HP PageWide Pro devices will feature best-in-class security with features such as secure boot and firmware integrity checking.4

All of the new HP PageWide and LaserJet devices can be used with HP's security services and JetAdvantage portfolio of management and security software, including the recently announced JetAdvantage on Demand cloud platform, reducing the burden on partners to secure and manage these devices.

Channel programs and financing

As part of the broader strategy outlined at its Global Partner Conference, HP has introduced a services-led channel business program to support partner success with its A3 portfolio and managed services-designated printers. Qualified partners will receive guaranteed pricing, sales tools and service support. Learn more here.

HP Financial Services (HPFS) will provide a variety of flexible IT investment options to help partners and their customers acquire, pay for and consume innovative A3 print technology.5

About HP

HP Inc. creates technology that makes life better for everyone, everywhere. Through our portfolio of printers, PCs, mobile devices, solutions, and services, we engineer experiences that amaze. More information about HP Inc. is available at http://www.hp.com.

Forward-Looking Statements

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of HP Inc. and its consolidated subsidiaries ("HP") may differ materially from those expressed or implied by such forward-looking statements and assumptions.

All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to any projections of net revenue, margins, expenses, effective tax rates, net earnings, net earnings per share, cash flows, benefit plan funding, deferred tax assets, share repurchases, currency exchange rates or other financial items; any projections of the amount, timing or impact of cost savings or restructuring and other charges; any statements of the plans, strategies and objectives of management for future operations, including the execution of restructuring plans and any resulting cost savings, revenue or profitability improvements; any statements concerning the expected development, performance, market share or competitive performance relating to products or services; any statements regarding current or future macroeconomic trends or events and the impact of those trends and events on HP and its financial performance; any statements regarding pending investigations, claims or disputes; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing.

Risks, uncertainties and assumptions include the need to address the many challenges facing HP's businesses; the competitive pressures faced by HP's businesses; risks associated with executing HP's strategy; the impact of macroeconomic and geopolitical trends and events; the need to manage third-party suppliers and the distribution of HP's products and the delivery of HP's services effectively; the protection of HP's intellectual property assets, including intellectual property licensed from third parties; risks associated with HP's international operations; the development and transition of new products and services and the enhancement of existing products and services to meet customer needs and respond to emerging technological trends; the execution and performance of contracts by HP and its suppliers, customers, clients and partners; the hiring and retention of key employees; integration and other risks associated with business combination and investment transactions; the results of the restructuring plans, including estimates and assumptions related to the cost (including any possible disruption of HP's business) and the anticipated benefits of the restructuring plans; the resolution of pending investigations, claims and disputes; and other risks that are described in HP's Annual Report on Form 10-K for the fiscal year ended October 31, 2015, HP's Quarterly Reports on Form 10-Q for the fiscal quarters ended January 31, 2016, April 30, 2016 and July 31, 2016, and HP's other filings with the Securities and Exchange Commission. HP assumes no obligation and does not intend to update these forward-looking statements. HP's Investor Relations website at http://www.hp.com/investor/home contains a significant amount of information about HP, including financial and other information for investors. HP encourages investors to visit its website from time to time, as information is updated and new information is posted.

© 2016 HP Inc. The information contained herein is subject to change without notice. The only warranties for HP Inc. products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP Inc. shall not be liable for technical or editorial errors or omissions contained herein.

   
(1) Comparison based on manufacturers' published specifications of fastest available color mode of all A3 color business printers $1,000-2,500 USD or EUR 900-EUR 2,300 Euros and MFPs $2,000-$5,000 USD or EUR 2,000-EUR 4,500 Euros as of August 2016, excluding other HP PageWide products, and products with 1% or lower market share using market share as reported by IDC as of Q2 2016. HP PageWide speeds based on General Office mode and exclude first page. Learn more at hp.com/go/printer speeds.
(2) Energy claim based in comparisons of data reported on energystar.gov for majority of in-class A3 color business printers $1,000-2,500 USD or EUR 900-EUR 2,300 Euros and MFPs $2,000-$5,000 USD or EUR 2,000-EUR 4,500 Euros as of August 2016, excluding other HP Page Wide products, and products with 1% or lower market share using market share as reported by IDC as of Q2 2016. Subject to device settings. Actual results may vary. Learn more at hp.com/go/pagewidebusiness.
(3) 'Most secure printers claim' applies to HP Enterprise-class devices introduced beginning in 2015 and is based on HP review of 2016 published embedded security features of competitive in-class printers. Only HP offers a combination of security features for integrity checking down to the BIOS with self-healing capabilities. A FutureSmart service pack update may be required to activate security features. For a list of compatible products, visit: http://h20195.www2.hp.com/V2/G...docname=4AA6-1178ENW
  For more information, visit: www.hp.com/go/printersecurityclaims
(4) Best-in-class security claim based on HP review of published embedded security features of competitive in-class A3 pro printers as of August 2016. For more information visit: www.hp.com/go/printersecurityclaims.
(5) Financing and service offerings available through Hewlett-Packard Financial Services Company and its subsidiaries and affiliates (collectively HPFSC) in certain countries and is subject to credit approval and execution of standard HPFSC documentation. Rates and terms are based on customer's credit rating, offering types, services and/or equipment type and options. Not all customers may qualify. Not all services or offers are available in all countries. Other restrictions may apply. HPFSC reserves the right to change or cancel this program at any time without notice.

Samsung shareholders approve $1B printing business sale to HP as company reports 30% YoY profit drop | VentureBeat | Business | by Paul Sawers

Samsung announced its Q3 2016 earnings yesterday, and they were pretty much as expected. The Korean tech titan confirmed revenue of 47.82 trillion Korean won ($41.8 billion), with operating profits hitting 5.2 trillion Korean won (around $4.6 billion). This represents a year-on-year (YoY) drop of 3.87 trillion won ($3.4 billion) and 2.19 trillion won ($3.4 billion), respectively, and equates to a YoY fall of 34 percent.

The figures are pretty much in line with the revised earnings forecast Samsung issued a couple of weeks back, shortly after confirming it was killing its flagship Galaxy Note7 smartphone due to a recurring issue with handsets catching fire. The Note7 disaster led to the Korean tech titan cutting its original earnings forecast for the quarter by a third, with the company’s stock falling by 7.5 percent.

But following the Q3 earnings announcement yesterday, Samsung held an extraordinary general meeting of shareholders, as scheduled, seeking shareholder approval for two key decisions.

Last month, Samsung announced that it planned to divest its printing business to HP for around $1 billion, and shareholders have now given their approval ahead of the planned spin-off on November 1, according to the Korea Herald. “The decision was made in the context of Samsung Electronics’ commitment to an on-going reorganization of business units in order to further concentrate on core competencies and to maximize competitiveness,” said Samsung CEO Oh-Hyun Kwon, in a statement. “Going forward, the Company will continue along this path of focusing on what it does best.”

Samsung’s push to give its vice chairman, Jay Y. Lee, a place on the board was also approved. “Mr. Lee’s election to the Board will allow him to more actively participate and take formal responsibility in the Company’s important decision-making, contributing to creating long-term, sustainable value for all of our stakeholders,” added Kwon.

Related to Samsung’s earnings news, IDC announced yesterday that overall smartphone shipments were up by 1 percent in Q3 2016, though Samsung’s market share lead over Apple shrank by 3.3 percentage points, due to the Galaxy Note7 fiasco.

 

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