After reports surfaced in the news media late last week that the company was mulling selling off its printer business, Samsung has confirmed that it is in the course of doing just that.
In a statement, the company confirms that its board met and approved the sale of its Printing Business Unit to HP as “part of the Company’s efforts to concentrate on its core business areas.”
Subject to shareholder approval later on in October, Samsung will spin off the Printing Business Unit into a new standalone company which it will then sell (100% stake), including assets, to HP Inc. HP will also take over the business’ 6,000 employees.
Under the sale arrangement, Samsung will still sell printers in markets like Korea under its own brand after having sourced them from HP.
While the statement steers clear of the deal’s worth, it is estimated to be about $1.05 billion.
The deal is expected to give HP a solid footing in Asia’s printer market where Samsung, despite trailing the market leaders globally, has a considerable share.