HP is set to acquire Poly for $1.7 billion – a 53% premium over the most recent share closing price. HP hopes this purchase will strengthen its opportunity in hybrid work solutions and provide sustainable growth and value creation into the long term. Previously named Plantronics, the company had both consumer and business market interests until 2018 when it pivoted to focus on in-office gear. A recent report by HP expects 75% of office workers will invest in new hardware to improve their hybrid work setups, and currently less than 10% of meeting rooms have video capability.
Poly had also been in talks with Logitech previously, but that merger had fallen through. HP hopes this acquisition will allow the company to tap into the $110 billion peripherals market. This acquisition is also complementary to last year’s acquisition of Teradici which specialises in high-performance computing in hybrid work environments. Clearly, HP is shifting its focus to hybrid work models.
The closing date of the acquisition is expected before the end of 2022, subject to Poly stockholder approval, regulatory clearance, and other typical closing conditions. HP predicts the deal will provide $500 million in revenue synergies by 2025.
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