HP Agreed to Buy Poly for $1.7 Billion

HP Inc has agreed to buy Poly, a workplace communications products maker for $1.7 billion in order to give rise to hybrid work. HP pays $ 40 in cash for each issued share of Poly, a premium of over 50% of the closing price on Friday. The two companies valued Poly's transaction, formerly known as Plantronics, at $ 3.3 billion, including debt.

Poly makes audio and video products, including headsets, desk phones and other video conferencing products. The company also expects to report annual sales of about $1.53 billion for its fiscal year that ends this month.

HP said the deal, which is expected to be completed by the end of the year, will help expand the hybrid office offering. It further said that office workers are investing to upgrade their home setup, while companies are reconfiguring traditional office spaces to support hybrid work and collaboration. 

Chief Executive Enrique Lores has said, “Only 10% of the offices have been equipped with video-conferencing solutions and we expect that more and more will be as companies start reopening and allow people to work from home.”

HP expects the transaction to add to its revenue growth and profitability, and it said that it remains committed to a $4 billion share buyback in the current fiscal year.