According to HP’s press release issued on 1st August, the £380M transaction is aimed at furthering ‘HP’s plans to disrupt the $55 billion A3 copier market and builds on its printing strategy’ whilst also exploring ‘increased profit pools from higher margin services’.
The acquisition enhances HP’s position in print leadership and follows several other investments including the acquisition of Samsung’s printer business and the launch of a bug bounty programme with Bugcrowd. According to Shivaun Albright, HP’s Chief Technologist of Print Security. “HP is committed to engineering the most secure printers in the world.”
The acquisition of Apogee supports HP’s aggressive strategy to pursue market share. HP is investing an increasing amount of time and money into launching a portfolio of A3 and A4 multi-functional printers based on unique intellectual property. The long-term hardware and service contracts that make up much of Apogee’s revenue are an attractive opportunity for HP to win new business over time, as these contracts come up for renewal.
Whilst HP expects to have completed the acquisition by the end of 2018, they have stressed that Apogee will remain an independent subsidiary of HP and will receive new investment to continue their growth. Previously, Apogee acquired several MPS businesses including Danwood in 2017.
So, with such a huge MPS provider being acquired, perhaps you’re unsure where to turn?
Digicorp can help, our motto is ‘big enough to deliver, small enough to care’. Whilst we might be smaller than our Apogee counterpart, we have all the internal resource and support required to provide bespoke hardware and software solutions and best-in-class service.
We are independent resellers of Ricoh, Canon and HP equipment enabling us to choose from a range of industry leading options when developing tailored solutions for our clients. Our skill and experience mean the solutions we implement deliver operational efficiency, greater quality output, better reliability and lower overall cost.
Whilst the heart of our business lies in print and document management systems, we recognised the need to broaden our services and have recently deployed a strategy to bring on new services within the communication and IT market.
We have partnered with award winning telephony companies to offer a range of hosted and mobile solutions. We also continue to work closely with our long-standing partner, Ricoh, to explore new services. Last year Ricoh’s leading source of revenue was surprisingly not from its print function but from IT Managed Services. Working alongside Ricoh we are delighted to offer IT Project Delivery, fixed term contract delivery and contract personnel as part of our portfolio.
Call us on 020 3929 3003 to discuss a range of business technology and managed services.