HP snaps up video device maker Poly for £1.3bn as tech firm embraces remote work pivot
Tech giant HP has announced plans to snap up audio and video devices maker Poly for $1.7bn in cash as it looks to ride the hybrid work boom.
The company has offered $40 for each share of Poly, which represents a premium of about 53 per cent to the stock’s last closing price.
On Poly’s most recent investor call, Poly CEO Dave Shull said, “The future of work is hybrid, which is to say for any given workforce, some percentage of folks will be remote, some percentage of the time, while the balance will be in the office.”
Including debt, this values the deal for the audio communications equipment for business and consumers maker, formerly known as Plantronics, at around $3.3bn.
“The rise of the hybrid office creates a once-in-a-generation opportunity to redefine the way work gets done,” HP Chief Executive Officer Enrique Lores said.
Shull said in a statement that the acquisition provides an opportunity for both companies to expand their reach. “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”, he said.
However, investors seemed uncertain. Whilst Poly’s shares rose 49 per cent in premarket trade, HP’s stock fell 1.4 per cent.
Work from home has become a norm for many organisations, and other recent acquisitions include Salesforce.com’s $27.7bn purchase of workplace messaging app Slack.
It is understood that this transaction is expected to close by the end of 2022.