HP has entered into an agreement to acquire Poly, a hardware company that fulfills the needs of its hybrid work solutions. The acquisition will cost $3.3 billion including net debt based on all-cash transactions with the price of each share at $40.
The COVID-19 pandemic has led to the necessity of hybrid work. Both employees and employers have upgraded their devices to work from home. Seamless collaboration is required across office and home environments. Simultaneously, up-gradation of traditional office spaces is being witnessed to support better the hybrid work trend including meeting room solutions.
A study reveals there are over 90 million meeting rooms and even 10 percent of these are not equipped with video capability. Hence, it is learned HP is focusing on capitalizing on the segment by acquiring Poly.
HP CEO and president Enrique Lores emphasized why the company requires the products and solutions of Poly in its portfolio equipped with business laptops and printers.
Lores said a significant rise is being witnessed in the demand for hybrid offices and the strong technology of Poly will help the company in making profitable growth in the long run.
Cloud-based platforms like Microsoft Teams and Zoom will be playing key roles in shaping the future of the hybrid world by enabling workers to collaborate from any location across the world.
Eric Yuan, chief executive officer of Zoom, praised the HP and Poly deal stating high-quality video and audio is now important in the hybrid workplace across industries. Their combination will help in unlocking some new opportunities when HP partners with Zoom to transform any space into a dynamic video collaboration hub.
The deal is said to be creating a robust portfolio in the segment as HP is aiming to drive growth as well as scale its peripherals which represents a business of about $110 billion.
HP is expecting the deal can shape up by the end of 2022 following the approval of the regulatory authority and stockholders too.
It is hoped that more can be heard and read about the plans of HP in the video conferencing hardware segment after the acquisition of Poly is fulfilled.
HP is the acronym for Hewlett-Packard. The company was founded in July 1939 by David Packard and Bill Hewlett in a car garage to produce equipment for electronic measurement and tests. It serves with computer hardware, computer software, IT services and IT consulting. It is headquartered in Palo Alto, California, US. From 2007, the company emerged as the leading PC manufacturer in the world.