Hewlett-Packard, one of the top manufacturers of computers, laptops, and an IT and software giant, announced on Monday, March 28, 2022, that it is set to acquire Poly, formerly known as Plantronics, an electronics company. HP will acquire Poly in an all-cash transaction for $40 per share, totaling $3.3 billion, including Poly’s net debt. The acquisition by HP is a bid by the company to boost its strategy of creating a growth-oriented portfolio and strengthen its position in the current hybrid work environment.
Enrique Lores, CEO of HP, remarked, “The rise of the hybrid office creates a once-in-a-generation opportunity to redefine the way work gets done.” He added, “Combining HP and Poly creates a lading portfolio of hybrid work solutions across large and growing markets.” He confessed that “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.”
Besides being an advantage to HP, the deal will also benefit Poly, as HP’s sales could help Poly fix its recent supply-chain issues, meanwhile exposing it to a wide range of customers. In an interview, Lores, HP’s CEO, noted the possibility of “tremendous opportunity” in the growth of hybrid work, with increasing market value for both audio and video conferencing gears used at home. Poly’s CEO, Dave Shull, shares similar views, commenting that “The future of work is hybrid, which is to say for any given workforce, some percentage of folks will be remote, some percentage of the time, while the balance will be in the office.” He further insisted that “These percentages can and will shift, but the simple truth is that the future of work will almost always involve at least one person out of the meeting room and one person in it.”
HP is now coming into the league to compete with Dell and Lenovo in the hybrid work environment due to the latest acquisition.