Deal valued at 380 million pounds
Earlier this month, HP (HPQ) announced its intention to acquire UK-based Apogee for 380 million pounds. Apogee was founded in 1993 and is an MSP (managed services provider) for print and process technology.
HP has been looking at acquisitions to disrupt the A3 copier market, which has been valued at $55 billion. Last year, HP acquired Samsung’s (SSNLF) printing business. HP expects these acquisitions to enhance its A3 and A4 product portfolios and build solutions to expand MPS as well as go-to-market capabilities.
Enrique Lores, HP’s president for Imaging and Print, stated, “The Apogee acquisition extends HP’s print leadership by boldly leveraging the industry shift to contractual sales as we aggressively pursue the A3 office market. We’re augmenting our go-to-market and enhancing our ability to deliver the services necessary to win in the profitable contractual market.”
Over the last few months, HP has also launched a portfolio of A3 and A4 multi-function printers. Its most recent acquisition of Apogee will expand its services portfolio in the contractual office printing and MPS verticals. HP is gaining traction in these verticals, driven by demand from SMBs (small and medium businesses).
HP’s acquisition is expected to close by the end of 2018.
Printing revenue rose 11% in fiscal Q2 2018
HP’s printing business generated revenues of $5.2 billion in fiscal Q2 2018, a growth of 11% year-over-year. HP achieved revenue growth in fiscal Q2 in hardware and supplies as well as strategic areas such as A3, graphics, and managed print services.