HP has bought UK-based office equipment dealer Apogee in a transaction valued at £380m. Apogee is Europe’s largest independent provider of print and outsourced services and document and process technology.
HP says the move is part of its plan to disrupt the $55bn A3 copier market. The deal is expected to close by the end of 2018 and Apogee will operate as an independent subsidiary of HP. Apogee is a "profitable and progressive OED with a proven track record of growth". The company also brings strong capabilities in contractual printing services and solutions, an experienced leadership team and access to SMB and mid-market customers. Apogee will have the same commercial relationship with HP as any other premium partner with access to the same tools and partner programs.
It plans to 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.
“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,” said Enrique Lores, President, HP Imaging and Print. “We’re augmenting our go-to-market and enhancing our ability to deliver the services necessary to win in the profitable contractual market. This deal complements our broader channel strategy and HP remains committed to building our business through our best-in-class partner program.”
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 A3 and A4 multi-function printers based on unique IP and value-added services and solutions. This move expands HP’s services portfolio in contractual office printing and MPS categories, where solutions are increasingly important for small and medium businesses (SMBs), it says.
