HP closes $3.3bn Poly deal

The PC and print vendor expects the move to drum up more hybrid work business as employers look for more at-home videoconferencing solutions

HP has completed its blockbuster acquisition of videoconferencing giant Poly.

The PC and print vendor completed the deal - first announced in March - as an all-cash transaction of $40 per share, implying a total value of around $3.3bn.

This was financed through a combination of balance sheet cash and new debt.

"It is a historic day for our business as we mark the union of two iconic companies that are innovating at the heart of hybrid work," said Enrique Lores, president and CEO of HP.

The PC and print vendor expects the move to drum up more hybrid work business as employers look for more at-home videoconferencing solutions.

HP's proprietary survey shows 75 per cent of office workers are investing to improve their home setups as businesses and their employees are focused on finding new ways to work in the hybrid world.

It says the acquisition of Poly brings more video conferencing solutions, cameras, headsets, voice and software.

Lores added: "Poly brings incredibly strong talent, differentiated technology, and a complementary go-to-market system that we believe will further strengthen our position in large and growing markets.

"Together, we will have vast opportunities to innovate for customers and grow our business as we continue building a stronger HP."

The addition of Poly will help HP drive scale in two of its key growth areas - peripherals and workforce solutions.

HP anticipates the transaction to be accretive to revenue, non-GAAP operating profit and non-GAAP EPS in FY23 post-merger.

"As ideas around the role of the traditional office continue to shift, there is a critical need for organisations to enable rich collaboration experiences between in-person and remote workers," said Patrick Moorhead, CEO and chief analyst at Moor Insights & Strategy.

"Combining Poly and HP is a win-win for both organisations. More importantly, uniting these two companies will provide end-users with the essential hardware, software, and services required to successfully navigate hybrid work experiences now and into the future."

With the transaction completed, Poly CEO Dave Shull will join HP as president of workforce services and solutions.

Shull will lead the newly formed organisation focused on driving a more expansive growth agenda across HP's commercial services business.

Andy Rhodes will run the combined HP-Poly business as general manager of hybrid work solutions and peripherals.

Rhodes, who joined HP in 2018, has previously led the company's commercial Personal Systems business and built the global peripherals organisation.