Blog Coverage Printing Evolution as HP Stakes on Samsung's Printing Segment

LONDON, UK / ACCESSWIRE / September 14, 2016 / Active Wall St. blog coverage looks at the headline from HP Inc. (NYSE: HPQ) ("HP"), the leader in personal computers and printing solutions. The company announced a definitive agreement on September. 12, 2016, to take over the printer business division of Samsung Electronics Co. Ltd. based in South Korea. This deal, defined at $1.05 billion, is speculated to elevate HP Inc.'s revenue as stated in its official press release. Register with us now for your free membership and blog access at: http://www.activewallst.com/register/.

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Legacy Issues

HP further surmised that this deal will assist in stepping the printing industry on the path to innovation. Seemingly, the printing industry faces several issues where dozens of replaceable parts complicate the maintenance process and out-dated copiers generate lag in productivity. The US based firm aims at resolving the rift by replacing copiers with the flagship superior multifunction printer (MFP) technology from Samsung Electronics Co. Ltd.

Patent Portfolio

Banking on Samsung's A3 MFPs portfolio, HP aspires to bring the power and simplicity of these easy-to-use printers at par with its own next-gen PageWide technologies. HP holds a long-term deal with Canon Inc. , in the laser printing sector. HP gets to expand its portfolio by more than 6,500 patents from Samsung through this deal. As Samsung's printing sector aims at providing laser printing solutions for heavy office use, this merger is a profitable deal for both HP and Canon Inc.

Fujio Mitarai, chairman and CEO of Canon Inc. stated in regards to HP's deal with Samsung that:

"This transaction will further evolve our collaboration and bring about growth for both of our companies."

The Samsung's printer division boasts a workforce of around 6,000 employees inclusive of 1,300 engineers and researchers along with a production base located in China. Additionally, 50 sales offices present around the world would be the surplus to HP Inc.'s quiver. This sector, which generated around $1.8 billion in revenue in the last fiscal year, is set to revamp and facilitate innovation in the printing segment.

Being one of the most voluminous ones in terms of capital after the split of HP flagship into HP enterprise (NYSE:HPE), and HP Inc., about 10 months ago, this deal comes with an expected closure duration of 12 months. Post the deal closure, Samsung has agreed to deliver an equity investment in favour of HP's stocks. The reciprocal investments stand at $100 million and $300 million through open market purchases respectively.

This acquisition, will deliver HP Inc. the armament to facilitate best-in-class printing solutions for its valuable clients.

Stock Performance

HP Inc.'s share price finished yesterday's trading session at $14.18, sliding 2.14%. A total volume of 14.98 million shares exchanged hands, which was higher than the 3 months average volume of 12.56 million shares. The stock has advanced 0.18%, 9.63% and 26.66% in the last one month, in the previous three months, and past six months, respectively. Furthermore, since the start of the year, shares of the company has gained 23.32%. The stock is trading at a PE ratio of 6.86 and has a dividend yield of 3.53%.

Canon's stock is trading slightly down by 0.91%, closing Tuesday's session at $28.37 on volume of 175.47 thousand shares. The company's shares gained 0.92% in the last three months. Shares of Canon trade at a PE ratio of 15.91 and have a dividend yield of 4.97%.

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