HP buys Poly for $3.3 bn to boost mobility business

HP Inc. announced it is set to acquire Poly, a provider of workplace collaboration solutions, in a deal worth $3.3 billion – including debt.
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Poly, a global audio and video technology, announced revenue of $410 million during the third quarter for the period ended January 1, 2022. Poly, formerly known as Plantronics, is a leader in video conferencing solutions, cameras, headsets, voice and software.

“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,” said Enrique Lores, President and CEO of HP.

The PC major said Poly will drive the growth of HP’s peripherals and workforce solutions businesses. Peripherals represent a $110 billion segment opportunity growing 9 percent annually. Workforce solutions represent a $120 billion segment opportunity that is growing 8 percent annually, says Frost & Sullivan.

HP expects the transaction to be immediately accretive to HP’s revenue growth and margins. HP expects to realize substantial revenue synergies in peripherals as well as meeting room and workforce solutions.

HP will be able to cross-sell across its commercial and consumer sales channels, while driving sales from combining Poly’s products with HP’s PC portfolio. HP expects to achieve $500 million of revenue synergies by FY25 and accelerate Poly’s revenue growth to an approximately 15 percent CAGR over the first three years after closing.

HP expects the transaction to improve Poly’s operating margins by approximately six percentage points by FY25, driven by scale efficiencies across supply chain, manufacturing and overhead.

CRM software maker Salesforce.com purchased workplace messaging app Slack Technologies last year in a $27.7 billion deal.