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HP Makes Bet on Hybrid Work With $1.7 Billion Deal

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.

“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.

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