HP Inc. (NYSE: HPQ) is acquiring Apogee Corporation, a Maidstone, Kent, U.K. based office equipment dealer (OED) and a large independent provider of print, outsourced services, and document and process technology.
The transaction, which is expected to close by the end of calendar year 2018, pending regulatory review and other customary closing conditions, values Apogee as of closing at £380M.
The deal furthers the acquirer’s plan to disrupt the $55 billion A3 copier market and builds on its printing strategy to enhance its A3 and A4 product portfolio, build differentiated solutions and tools to expand its Managed Print Services (MPS) and invest in its direct and indirect go-to-market (GTM) capabilities. This includes the selective acquisition of OEDs that provide access to increased profit pools from higher margin services.
HP has been investing in the A3 business with strategic initiatives including the acquisition of Samsung’s printer business and the launch of a portfolio of superior A3 and A4 multi-function printers based on unique IP and value-added services and solutions.
This transaction expands HP’s services portfolio in contractual office printing and MPS categories, where solutions are increasingly important for small and medium businesses (SMBs).
Apogee is a profitable OED that has capabilities in contractual printing services and solutions, and access to SMB and mid-market customers. Following the close, the company will operate as an independent subsidiary of HP, with a governing board comprised of HP and Apogee management.
The company will have the same commercial relationship with HP as any other premium partner with access to the same tools and partner programs.