HP Inc. (NYSE: HPQ) and Poly (NYSE: POLY) announced that they had entered a definitive purchase agreement where the provider of workplace collaboration options will pay an enterprise value of about $3.3 billion, or $40 per share, inclusive of the company’s net debt, to acquire Poly.
This purchase agreement will accelerate HP Inc’s strategy to build a more robust and growth-oriented business portfolio, strengthening its industry position in the hybrid work solutions space. The deal will also help position it for long-term value creation and sustainable growth.
The rise in popularity of hybrid work environments is helping encourage a sustained demand for tech that allows for seamless collabs across the office and home environments. Roughly 75% of office employees are improving their homes to accommodate new ways of working. HP Inc’s Chief Executive Officer and President, Enrique Lores, said:
“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.”
Mr. Lores claims that the rise of hybrid workspaces has created a once-in-a-lifetime chance to redefine and redesign how people work. Poly’s President and Chief Executive Officer, Dave Shull, said:
“The combination gives us an opportunity to dramatically scale, reaching new markets and channels, supercharging our innovation with a like-minded partner.”
He claims this deal provides certain and compelling value for its shareholders and highlights the hard work the team has done to become a well-renowned leader in helping businesses meet the trials and tribulations of a generational disruption in modern-day work.
Details of the deal
HP Inc expects to close the deal by the end of 2022. However, this will be subject to Poly shareholder approval and the required regulatory clearances. The agreement is consistent with the company’s capital returns program target. HP will remain committed to buying back shares this year.