In brief: In a world where hybrid work is becoming more popular, HP thought it would be a good idea to start expanding its portfolio in this segment. However, instead of designing new products, the PC company plans to acquire the hybrid-work solution provider Poly, once known as Plantronics.
Information technology company HP announced plans to buy Poly for $3.3 billion, including the latter's debt. The deal's terms offer to pay $40 per share for Poly's entire IP portfolio of hybrid work solutions, including its latest webcams, video conferencing monitors, and services.
The deal is based on the increasing popularity of hybrid work environments worldwide. According to HP, 75 percent of office workers invest in their home setups to fulfill their needs. In addition, offices are being transformed to support these environments, with the prime example being the adaptation of meeting rooms.
"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."
By acquiring Poly, HP hopes to improve its position in the peripherals and workforce solutions markets, providing a complete ecosystem of devices, software, and digital services for hybrid environments. Moreover, HP believes the transaction will improve Poly's operational costs across the supply chain, manufacturing, and overhead. After closing the deal, HP expects to generate $500 million in revenue and increase Poly's revenue growth to an approximately 15-percent CAGR (compound annual growth rate) in the first three years.
Assuming everything goes according to plan (stockholder and regulators approval), HP expects the deal to close by year-end.
Despite being a big player in the hybrid work market, Poly has found competitors in Dell and Cisco. Like Poly, they offer (or plan to) a complete ecosystem of services, software, and devices to improve hybrid work environments. Most Dell products are still in a prototype phase, but Cisco's Webex products are already available to equip your office.