HP Acquires Poly in $3.3 Billion Deal

Issue 116

Hewlett Packard has agreed to buy Poly, formerly known as Plantronics in a $3.3 billion deal that will help the laptop-maker further capitalize on the pivot to hybrid work.

The all-cash transaction gives Poly’s shareholders $40 a share, a 53% premium to its closing share price Friday. The $3.3 billion price tag refers to Poly’s enterprise value, which includes debt.

Acquiring Poly, which sells phone headsets and audio and video accessories, will help HP better meet customer demand, according to HP Chief Executive Officer Enrique Lores. Plantronics changed its name to Poly in 2019, a year after buying Polycom for $2 billion.

HP aims to tap a growing need for technology that connects remote workers to office staff, as companies around the world accommodate employees accustomed to Covid-era flexibility. The PC giant is also working to diversify beyond personal computers and printers into ancillary businesses. ​

“The rise of the hybrid office creates a once-in-a-generation opportunity to redefine the way work gets done,” Lores said in a statement. “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.”

Source: Bloomberg