HP Inc announced the completion of its acquisition of Poly, a leading global provider of workplace collaboration solutions. The deal is expected to accelerate HP’s strategy to create a more growth-oriented portfolio, strengthen its industry opportunity in hybrid work solutions, and position the combined organization for long-term sustainable growth and value creation.
“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,” said Enrique Lores, President, and CEO of HP. “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 merger of HP and Poly comes as companies and their employees focus on finding better ways to work and collaborate in the hybrid world. Approximately 75% of office workers are investing in improving their home setups. Traditional office spaces are also being reconfigured to support hybrid work and collaboration, focusing on meeting room solutions. In more than 90 million rooms, less than 10% have video capability2. As a result, the office meeting room solutions segment is expected to triple by 2024.
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 growing 8% annually as companies invest in digital services to set up, manage, and secure more distributed IT ecosystems 2.
With the transaction completed, Poly CEO Dave Shull will join HP as President of Workforce Services & Solutions, starting November 1. Shull will lead the newly formed organization focused on driving a more expansive growth agenda across HP’s commercial services business. He brings extensive global experience spanning technology, digital media, operational transformation, and business development to the role. Shull will join the HP executive leadership team and report to Lores.
Andy Rhodes will run the combined HP-Poly business as General Manager, Hybrid Work Solutions & Peripherals. Rhodes, who joined HP in 2018, has previously led the company’s commercial Personal Systems business and built the organization of the global peripheral. Before HP, he held several senior executive roles at Dell. Rhodes will continue to report to HP Personal Systems President Alex Cho.
HP completed the deal as an all-cash transaction of $40 per share, implying a total enterprise value of approximately $3.3 billion, including Poly’s net debt. The transaction was financed through a balance sheet cash and new debt.