HP Acquires Hiflex Software As Printer Market Returns To Growth

-35.04%
Downside
29.94
Market
19.45
Trefis
HPQ: Hewlett logo
HPQ
Hewlett

HP (NYSE:HPQ) recently announced the acquisition of Hiflex Software GmbH, a privately held global software solutions provider specializing in web-to-print and management information systems solutions for printing services. [1] The acquisition coincides with the worldwide hardcopy peripherals market returning to year-over-year growth in third quarter of 2011. HP continues to be the leader in the market with a dominating share of 42.9% followed by Canon (NYSE:CAJ), Epson and Samsung. [2]

We estimate that imaging and printing offerings (printers & ink cartridges) make up nearly 23% of our $42 Trefis price estimate for HP.

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Hardcopy Peripheral Market Is Here To Stay

According to research firm IDC, 31.3 million units were shipped in the worldwide hardcopy peripheral market, up 1.6%.

However, the research firm expects the market to remain flat for the remainder of the year. This is primarily due to growing concerns about the economy and not because printing is becoming obsolete with the advent of tablets and e-readers as many believe. In fact, worldwide page volume from digital hardcopy devices climbed to 3.1 trillion in 2010, up 1.4% from 2009, according to IDC. [3]

Hiflex Will Take Printing To The Cloud

With business customers looking for increased mobility across the services and solutions they use, as most of the employees are now equipped with mobile devices, HP is turning to Hiflex’s technology to allow its business customers print materials anywhere, anytime.

Hiflex acquisition will extend the HP’s portfolio of cloud-based technologies and solutions and will enable continued innovation across the company’s imaging and printing offerings.

In recent times, HP has been extending its Cloud capabilities given the vast market opportunity it offers. As such it is just natural that the firm is doing the same to its second most profitable business segment.

Understand How a Company’s Products Impact its Stock Price at Trefis

Notes:
  1. HP Acquires Hiflex, a Web-to-print and Management Information Systems Software Company, HP []
  2. Worldwide Hardcopy Peripherals Market Returned to Year-Over-Year Growth in the Third Quarter of 2011, IDC []
  3. Developing Regions Drive Worldwide Page Volume Growth as Developed Regions Lose Ground, IDC []