Both Hewlett-Packard and Xerox have made acquisitions in an effort to bolster their managed print services.
Technology giant HP announced that it signed a definitive agreement to acquire substantially all of the assets of MSP provider Printelligent. The infrastructure, software and trained workforce of Printelligent, combined with HP’s channel relationships and base of services and solutions, will strengthen HP’s leadership in MPS, the company said.
Financial terms of the deal were not disclosed.
HP said the acquisition of Printelligent is part of the company’s effort to optimize the traditional technology environments. The greatest opportunity for MPS worldwide will be in midsize companies, with five-year projected compound annual growth rates of 14 to 23 percent (100-499 and 500-999 employee companies), according to Angele Boyd, vice president and general manager of the imaging/printing document solutions and SMB group for IT research firm IDC.
“As a market leader in managed print services, this acquisition puts us even further ahead by strengthening our ability to deliver services and solutions through our channel partners to SMB customers,” said Vyomesh Joshi, executive vice president of HP’s imaging and printing group. “We’re reinforcing our commitment to our channel partners by bringing them a level of technology and experience that is unprecedented in the industry.”
Upon completion of the acquisition, Printelligent’s assets will be integrated into the LaserJet and Enterprise Solutions unit within the Imaging and Printing Group of HP. The acquisition is subject to customary closing conditions and is expected to close in the company’s fiscal third quarter.
“Printelligent built an industry-leading managed print offering over the past 23 years,” said Rob Wellman, CEO of Printelligent. “With HP’s strength, this offering will continue to grow, and channel partners will deliver an unparalleled solution to help customers better manage their print environments.”
Meanwhile, MPS competitor Xerox acquired NewField IT, a U.K.-based print consultancy and software solution provider. NewField IT’s consulting and software services are designed to help companies implement MPS more quickly. For example, its Asset DB software suite creates visual maps of a floor plan to show how assets-like printers and copiers-are used throughout an office.
NewField IT will operate as a wholly owned Xerox subsidiary. Co-founders Robert Newry and James Duckenfield will continue to jointly lead the company, with Newry reporting directly to Stephen Cronin, Xerox’s president of Global Document Outsourcing. NewField IT will maintain its name and keep its headquarters in Twickenham, U.K., and its U.S. operations in Philadelphia. Its employees will all continue to operate as part of NewField IT.
“As an independent unit, we can take advantage of Xerox’s global presence and respected innovation in the MPS space to scale our business and technology,” said Newry. “Our approach to serving clients doesn’t change: We’ll remain an integral part of MPS offerings provided through a number of vendors in the field, and we will continue to preserve our impartibility in serving the market.”