HP Makes Bet on Hybrid Work With $1.7 Billion Deal

HP said the deal, expected to close by year-end, would help grow its hybrid-office offerings.


Richard B. Levine/Zuma Press

HP Inc. agreed to buy Poly, a maker of workplace communications products, for $1.7 billion in a bet on the rise of hybrid work.

HP will pay $40 cash for each outstanding share of Poly, a premium of more than 50% from its closing price Friday. The companies valued the deal for Poly, formerly known as Plantronics, at $3.3 billion, including debt.

Poly makes audio and video products, such as headsets, desk phones and other conferencing products. The company is expected to report annual sales of about $1.53 billion for its fiscal year that ends this month, according to analysts surveyed by FactSet.

HP had annual sales of $56.7 billion in its most recent fiscal year that ended in October.

HP said the deal, expected to close by year-end, would help grow its hybrid-office offerings. The maker of PCs, printers and other computer products said office workers are investing to improve their home setups, while businesses are reconfiguring traditional office spaces to support hybrid work and collaboration.

Plexiglass dividers and floor decals might not be permanent, but the pandemic will bring lasting change to offices. Experts from the architecture and real-estate industries share how they are getting back to work and what offices will look like in the future. Photo: Cesare Salerno for The Wall Street Journal

“Only 10% of the offices have been equipped with video-conferencing solutions” HP Chief Executive Enrique Lores said on a call with analysts Monday. “We expect that more and more will be as…companies will start reopening and allow people to work from home.”

HP expects the transaction to immediately add to its revenue growth and profitability, and the company said it remains committed to buying back at least $4 billion in the current fiscal year.

Shares of HP fell 2.7% Monday to $38.75. Poly shares jumped 53% to $39.99.

Write to Will Feuer at will.feuer@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Appeared in the March 29, 2022, print edition as ‘HP Deal Places Bet On Hybrid Workplace.’


Leave a Comment