HP is betting big on the future of hybrid work. The tech giant announced on Monday that it will acquire Poly, which develops audio and video hardware for virtual meetings.
San Jose and Santa Cruz-based Poly is the new name for headset manufacturer Plantronics, which rebranded after it acquired business communications company Polycom for about $2 billion in 2018.
HP will pay $1.7 billion to acquire Poly at $40 per share, which is a 53 percent premium over Friday’s closing price of $26.20 per share. When including Poly’s debt, the deal is valued at $3.3 billion.
HP said in a news release that it sees an opportunity to provide companies with video conference technology as they shift into a hybrid work model.
The company’s research shows 75 percent of office workers are spending money to improve their audiovisual capabilities for virtual meetings. Citing market research firm Frost & Sullivan, HP said less than 10 percent of meeting rooms are equipped with video capability, which could cause the market for office meeting room solutions to triple by 2024.
“The rise of the hybrid office creates a once-in-a-generation opportunity to redefine the way work gets done,” HP CEO Enrique Lores said in a statement. “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.”
Poly CEO Dave Shull said in a statement the deal will allow the company to dramatically scale, reach new markets and continue to innovate its product offerings.
Zoom founder and CEO Eric Yuan said in a statement that the combination of the two companies unlocks opportunities to partner with Zoom and “turn any space into a hub for dynamic video collaboration.”
In addition to this news, HP is actively hiring for more than 60 roles spanning its product, design, engineering and marketing teams.
