HP to buy Poly in $3 billion deal

HP has entered into a definitive agreement to acquire Poly in an all-cash transaction for a total value of $3.3 billion. The company said the acquisition accelerates its strategy to create a more growth-oriented portfolio, as well as strengthening HP’s hybrid work solutions offerings.

Enrique Lores, president and CEO, HP, explained, “The rise of the hybrid office creates a once-in-a-generation opportunity to redefine the way work gets done. 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.”

Dave Shull, CEO and president, Poly, added, “I am thrilled about the opportunity this represents for Poly, our employees, partners and customers. The combination gives us an opportunity to dramatically scale, reaching new markets and channels, supercharging our innovation with a like-minded partner.

“This transaction offers compelling and certain value for our shareholders and speaks to the hard work done by our teams to become a recognized leader in helping businesses everywhere meet the challenges of a generational disruption in the way people work.”

HP expects the transaction to be immediately accretive to its revenue growth and margins at close. With the expanded value proposition of a complete hybrid work solution, combined with HP’s scale and go-to-market capabilities, HP expects to realise substantial revenue synergies in peripherals as well as meeting room and workforce solutions.

HP added it will be able to cross-sell across its global commercial and consumer sales channels, while driving incremental sales from combining Poly’s products with HP’s PC portfolio. In addition, HP expects the transaction to improve Poly’s operating margins by approximately six percentage points from current levels by FY25, driven by scale efficiencies across supply chain, manufacturing and overhead.

The transaction is expected to close by the end of calendar 2022, subject to Poly stockholder approval, required regulatory clearances, and the satisfaction of other customary closing conditions. HP will finance the transaction through a combination of balance sheet cash and new debt.

HP said this transaction is consistent with its capital returns target. The total enterprise value of $3.3 billion is based on $40 per share and is inclusive of Poly’s net debt.

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Charlotte Hathway

Charlotte is the editor of Comms Business and writes about the latest technology innovations and business developments across the Channel. Got a story? Get in touch – charlotte.hathway@markallengroup.com.

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