HP is set to acquire Poly in a deal worth $3.3bn to “drive growth and scale” in its peripherals business.
Enrique Lores, President and CEO of HP, said: “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.”
HP was itself the subject of a hostile takeover bid from Xerox in 2019, only for Xerox to scrap the plans amid the start of the pandemic and resistance from HP’s leadership. HP has a market cap of around $40bn.
The vendor said it expects to realize “substantial revenue synergies”, pegging the figure at $500m by full year 2025.
Poly CEO, Dave Shull, said: “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 highlighted Teams and Zoom as two platforms driving growth in hybrid working cultures, with Zoom CEO Eric Yuan praising the proposed merger of HP and Poly.
“Highest quality audio and video has become an essential component of work across every industry, whether in an office, at home, or on the go,” he said.
“Bringing the Poly and HP offerings together will unlock new opportunities to partner with Zoom and turn any space into a hub for dynamic video collaboration.”
The transaction is expected to close by the end of 2022 and is subject to approval from Poly shareholders.
HP said it will fund the acquisition through a combination of cash and new debt. The PC vendor will pay $1.7bn and also take on Poly’s debt.