HP Inc. to acquire Poly

HP Inc. announced a blockbuster deal to acquire Poly, a global provider of video conferencing hardware, conference phones and headsets, for $40 per share or $3.3 billion in a bid to boost HP’s hybrid office business.

HP will use a combination of balance sheet cash and new debt to finance the acquisition. HP expects to close the acquisition by the end of this year after getting approval from Poly shareholders and federal regulators.

Enrique Lores, HP’s President and Chief Executive, said in a statement, “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 CEO Dave Shull said that the acquisition provides an opportunity for both companies to expand their reach. “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.”

Poly has seen recent financial struggles, with flat revenue performance and supply chain issues. The company recently projected $1.7 billion in revenue for fiscal 2022, down from $1.74 billion in fiscal 2021. HP, on the other hand, said that it expects to realize $500 million of revenue synergies from the purchase by 2025 and hopes to speed Poly’s growth rate to 15 percent annually within the first three years.