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HP Slips on $3.3 Billion Deal to Buy Audio Products Maker Poly

Published 03/28/2022, 08:56 AM
Updated 03/28/2022, 08:58 AM
© Reuters

By Dhirendra Tripathi

Investing.com – HP Inc (NYSE:HPQ) stock slipped 2.6% in premarket Monday as traders tried to absorb the company’s game plan behind acquiring Poly (NYSE:POLY), a maker of hybrid workplace solutions.

The tech giant is buying the audio and video products maker for $3.3 billion, including debt. The deal offers $40 for each share of Poly, a premium of about 53% to the company's last closing price. 

Peripherals represent a $110 billion segment opportunity growing 9% annually, HP said, while workforce solutions represent a $120 billion segment opportunity that is growing 8% annually, as companies invest in digital services to set up, manage, and secure more distributed IT ecosystems.

The pandemic-fueled adoption of hybrid work is behind HP’s acquisition.

The rise of hybrid work is creating sustained demand for technology that enables seamless collaboration across home and office environments, the company said.

According to a company release, around 75% of office workers are investing to improve their home setups to support new ways of working. Traditional office spaces are also being reconfigured to support hybrid work and collaboration, with a focus on meeting room solutions.

HP expects the transaction to be immediately accretive to HP’s revenue growth, margins, and adjusted EPS at close. The transaction is expected to close by December-end.

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