HP aims to ride hybrid labor boom with $1.7 billion poly buyout

A screen displays the HP Inc. logo on the NYSE in New York
FILE PHOTO: A screen displays the HP Inc. logo at the New York Stock Exchange (NYSE) in New York, U.S. November 18, 2019. REUTERS/Brendan McDermid

March 28, 2022

(Reuters) – HP Inc said on Monday it would buy audio and video equipment maker Poly for $1.7 billion in cash to capitalize on a boom in demand for electronic products fueled by hybrid work.

HP, which believes the deal will position it for long-term growth, fell 1.4% in premarket trading.

The company has offered $40 for each share of Poly, formerly known as Plantronics, for a premium of about 53% over the stock’s last closing price. Including debt, the deal is valued at $3.3 billion.

“The rise of the hybrid office creates a unique opportunity to redefine the way work gets done,” said Enrique Lores, HP chief executive officer.

As the global health crisis increases the need for hybrid work, the market has seen multiple acquisitions, including last year’s $27.7 billion purchase of enterprise software maker’s workplace messaging app Slack Technologies Inc.

Poly, whose shares are up 49% in premarket trading, said it would have to pay a $66 million fee to exit the deal.

The transaction is expected to close by the end of 2022.

(Reporting by Tiyashi Datta in Bengaluru; Editing by Aditya Soni and Vinay Dwivedi) HP aims to ride hybrid labor boom with $1.7 billion poly buyout


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