HP announced today that it was acquiring PC accessory maker Poly, formerly known as Plantronics, in a deal worth $3.3 billion. HP touted the rise of hybrid work and Poly’s leadership in video conferencing solutions as a good opportunity for the two companies to combine their strengths.
“The rise of the hybrid office creates a once-in-a-generation opportunity to redefine the way work gets done,” said Enrique Lores, President and CEO of HP. “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.”
Citing an internal survey, HP said that 75% of office workers have been spending money to improve their home offices to adapt to this more hybrid world. On the other hand, companies have also been investing in meeting room solutions, with HP mentioning a Frost & Sullivan study expecting the office meeting room solutions segment to triple by 2024.
“Peripherals represent a $110 billion segment opportunity growing 9% annually, driven by the need for more immersive experiences. Workforce solutions represent a $120 billion segment opportunity that is growing 8% annually, as companies invest in digital services to set up, manage, and secure more distributed IT ecosystems,” HP highlighted in its press release.
HP expects the acquisition to close at the end of this year. Once the transaction gets approved by regulatory instances, HP expects to “realize substantial revenue synergies” by combining Poly’s products with HP’s PC accessories.