HP to acquire Poly for $1.7bn

HP is set to acquire audio and video device manufacturer Poly for $1.7 billion.

The all-cash deal will see Poly’s shareholders receive $40 per share.

The deal implies a total enterprise value of $3.3 billion, inclusive of Poly’s net debt.

HP said the acquisition is part of its strategy to create a more growth-oriented portfolio, strengthen its industry opportunity in hybrid work solutions, and position the company for long-term growth.

Approximately 75 per cent of office workers are investing to improve their home setups to support new ways of working according to figures cited by HP.

In addition, there are currently more than 90 million office rooms, of which less than 10 per cent have video capability according to the figures, and the office meeting room solutions segment is expected to triple by 2043 as a result.

The deal is expected to finalise by the end of 2022.

The hybrid working space as seen several large acquisitions since the beginning of the pandemic.

In December 2020, Salesforce bought communication platform Slack for $27.7 billion as part of its strategy to develop an extensive open ecosystem of apps and workflows for business.

“The rise of the hybrid office creates a once-in-a-generation opportunity to redefine the way work gets done,” said Enrique Lores, president and chief executive at HP. “Combining HP and Poly creates a leading portfolio of hybrid work solutions across large and growing markets.”

He added: “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.”

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