HP to buy Poly in $3.3bn deal

HP Inc has agreed to buy conferencing hardware and headset company Poly in a $3.3bn cash deal.

Under the terms of the acquisition, HP will pay $40 per share. The company said on Monday that the deal accelerates its strategy to create a more growth-oriented portfolio, further strengthens its industry opportunity in hybrid work solutions, and positions it "for long-term sustainable growth and value creation".

Enrique Lores, president and chief executive 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 expects the deal to be immediately accretive to its revenue growth, margins, and non-GAAP earnings per share at close. It expects to achieve $500m of revenue synergies by FY25 and accelerate Poly’s revenue growth to an approximately 15% compound annual growth rate over the first three years after closing.