HP has finalized the acquisition of Poly for $1.7 billion in an all-cash deal totaling $3.3 billion inclusive of the debt. Poly is a maker of workplace communication products like headsets, AV conference room products including desk phones as well as software.
The move is aimed at catalysing HP’s foray into hybrid work and comes after its acquisition of Teradici, a remote desktop software provider, eight months ago. The resulting ecosystem will now be able to provide complete workforce solutions in a hybrid work setting that requires seamless transitions between the office and home setups.
HP CEO Enrique Lores stated, “The rise of the hybrid office creates a once-in-a-generation opportunity to redefine the way work gets done.”
In a press release, HP claimed that both companies would now be coming together to deliver “a complete ecosystem of devices, software, and digital services” aimed at enhancing employees’ experience, productivity, and hybrid working capabilities.
Lores further elucidated that HP and Poly combination 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.”
While the deal will now help Poly reduce the production and overhead costs of its products, it will also help increase the sale due to their pairing with computers and laptops. As per this report, HP projects the purchase will push Poly’s annual growth to 15 per cent in the three years after the deal closes.
Moreover, HP has noted that peripherals represent a $110 billion segment opportunity while growing 9 per cent annually, and workforce solutions represent a $120 billion segment opportunity that is growing 8 per cent annually.
As per Frost & Sullivan, a threefold increase in global spending on conference room gear, from $2.75 billion in 2020 to $7.71 billion in 2025, will be made driven by increased demand in the post-pandemic era.
TECHnalysis Research analyst Bob O’Donnell explained, “It’s clear that video meetings are not going away because not everyone’s going back [to the office] … A lot of the companies that HP is going to be talking to need more and more conference-room [products].”
Being a known and trusted name in computers, HP can now leverage its enhanced portfolio by pairing its laptops and Poly devices. This will also attract more buyers as it reduces the stress for the IT support staff of a company by the way of a single point customer support from HP.
The deal is expected to close by the end of the year, pending approval from regulators and Poly stockholders.