HP acquires Poly for $3.3bn
Cash transaction is 'once-in-a-generation opportunity' to redefine hybrid working portfolio, HP says
HP Inc has issued a statement confirming it has agreed to buy video conferencing solutions vendor Poly in an all-cash transaction worth $3.3bn.
The PC and print vendor will pay $40 per share at $1.7bn and also take on Poly's net debt.
HP CEO Enrique Lores said the acquisition of the video conferencing, headsets, video and software vendor will mean HP can benefit from the shift towards hybrid working and represents "once-in-a-generation opportunity to redefine the way work gets done".
The acquisition will drive growth and scale HP's peripherals and workforce solutions business, HP says, with the former representing a $110m opportunity growing nine per cent annually and the latter a $120m opportunity growing at eight per cent each year.
"Combining HP and Poly creates a leading portfolio of hybrid work solutions across large and growing markets. Poly's strong technology, complementary go-to-market, and talented team will help to drive long-term profitable growth as we continue building a stronger HP."
What next for partners?
Poly CEO Dave Shull called the move an opportunity for partners to "dramatically scale".
"We will be reaching new markets and channels, supercharging our innovation with a like-minded partner," he said.
In an early indication of HP's intentions for the integration, the print vendor says it intends to make $500m of revenue synergies by fiscal 2025, and accelerate Poly's revenue growth to approximately 15 per cent CAGR over the first three years after the merger.
The transaction is expected to close by the end of calendar 2022.
HP expects the transaction to be immediately accretive to its revenue growth, margins, and non-GAAP EPS at close.
"With the expanded value proposition of a complete hybrid work solution, combined with HP's scale and go-to-market capabilities, HP expects to realise substantial revenue synergies in peripherals as well as meeting room and workforce solutions."