HP is buying video conferencing vendor Poly in an all-cash transaction worth $3.3 billion paying $40 per share at $1.7 billion and 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 a “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 ent annually and the latter a $120 million opportunity growing at eight percent 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.”
Poly CEO Dave Shull called the move an opportunity for partners to “dramatically scale” as the company will be “reaching new markets and channels, supercharging our innovation with a like-minded partner”.
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 percent CAGR over the first three years after the merger.
