PC giant acquisition of Poly is aimed at the change of concepts of remote working, and how HP looks at future office work and meetings!
Poly makes audio and video products, such as headsets, desk phones and other conferencing products.
The company is expected to report annual sales of about $1.53 billion for its fiscal year that ends this month, according to analysts surveyed by FactSet.
- HP had annual sales of $56.7 billion in its most recent fiscal year
HP said the deal, expected to close by year-end, would help grow its hybrid-office offerings.
Senior official of Poly inc. tweet on the HP deal
Excited to share the news. @PolyCompany has entered into an agreement to be acquired by HP, and I am genuinely thrilled about the opportunity this represents for Poly and our employees, partners and customers.
— Dave Shull (@daveshull) March 28, 2022
The maker of PCs, printers and other computer products said,
office workers are investing to improve their home setups, while businesses are reconfiguring traditional office spaces to support hybrid work and collaboration.WSJ reports
“Only 10% of the offices have been equipped with video-conferencing solutions” HP Chief Executive Enrique Flores said on a call with analysts.
“We expect that more and more will be our new normal, as companies will start reopening and allow people to work from home.”
HP expects the transaction to immediately add to its revenue growth and profitability as the move sent shares of HP down by 2.7% to $38.75, while Poly shares jumped 53% to $39.99.
*HP will pay $40 cash for each outstanding share of Poly, a premium of more than 50% from its closing price Friday. The companies valued the deal for Poly, formerly known as Plantronics, at $3.3 billion, including debt.