HP acquires Poly

HP Inc has announced the completion of its acquisition of Poly, a leading global provider of workplace collaboration solutions. Poly brings industry-leading video conferencing solutions, cameras, headsets, voice and software to HP, allowing customers to create meeting equity.

The combined organization will deliver a complete ecosystem of devices, software, and digital services to create premium employee experiences, improve workforce productivity, and provide enterprise customers with better visibility, insights, security, and manageability across their hybrid IT environments.

The deal is expected to accelerate HP’s strategy to create a more growth-oriented portfolio, further strengthen its industry opportunity in hybrid work solutions, and position the combined organization for long-term sustainable growth and value creation.

Enrique Lores, President and CEO of HP, said, “This is a historic day for our business as we mark the union of two iconic companies that are innovating at the heart of hybrid work. Poly brings incredibly strong talent, differentiated technology, and a complementary go-to-market system that we believe will further strengthen our position in large and growing markets. Together, we will have vast opportunities to innovate for customers and grow our business as we continue building a stronger HP.”

The addition of Poly will help HP to drive innovation and scale in two of its key growth areas: peripherals and workforce solutions. Peripherals represent a $110 billion segment opportunity growing 9% annually, driven by the need for more immersive experiences2. Workforce solutions represent a $120 billion segment opportunity that is growing 8% annually, as companies invest in digital services to set up, manage, and secure more distributed IT ecosystems 2.

Poly CEO Dave Shull will join HP as President, Workforce Services & Solutions, starting from November. Shull will lead the newly formed organization focused on driving a more expansive growth agenda across HP’s commercial services business. Shull will join the HP executive leadership team and report to Lores.

HP completed the deal as an all-cash transaction of $40 per share, with a total enterprise value of approximately $3.3 billion. The transaction was financed through a combination of balance sheet cash and new debt.