HP Inc. agreed to buy Samsung Electronics Co.’s printer business for $1.05 billion, a deal designed to bolster the Silicon Valley company’s offerings in the market for 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 on Monday. Samsung also agreed to buy between $100 million and $300 million in HP shares through open-market purchases after the business sale is completed.
Several hours after disclosing the deal, HP unveiled 16 new multifunction printers targeted at so-called A3 larger printer-copier combinations that are the stronghold of such companies as Xerox Corp., Canon Inc., Ricoh Co. and Konica Minolta Inc. HP, created as part of the breakup of Hewlett-Packard Co. last fall, sells personal computers but gets most of its profit from supplying ink and toner for its printers. It is the market leader in the desktop printer business. That business hasn’t been growing lately, in part because PC users print fewer pages these days. HP last month reported that revenue from ink and toner supplies declined 18% in the third fiscal quarter from the year-earlier period, while printer hardware unit sales fell 10%.