HP Inc.  Completes the acquisition of Poly

HP Inc. Completes the acquisition of Poly

Palo Alto, California, August 29, 2022 – HP Inc. announced. (NYSE: HPQ) today announced the completion of its acquisition of Poly, the leading global provider of workplace collaboration solutions.

The transaction is expected to accelerate HP’s strategy to create a more growth-oriented portfolio, enhance its industry opportunities in hybrid business solutions, and position the combined enterprise for sustainable long-term growth and value creation. HP expects the transaction, first announced in March, to be cumulative in non-GAAP revenue and operating profit and non-GAAP earnings per share in fiscal year 23 after the merger.

“This is a historic day for our business, as we celebrate the unification of two innovative companies at the heart of the hybrid business,” said Enrique Loris, President and CEO of HP. “Poly brings incredibly strong talent, outstanding technology, and a complementary market entry platform that we believe will strengthen our position in large and growing markets. Together, we will have tremendous opportunities to innovate for customers and grow our business as we continue to build stronger HP.”

The HP and Poly merger comes as companies and their employees focus on finding better ways to work and collaborate in the mixed world. Nearly 75% of office workers invest to improve their home settings1. Traditional office spaces are also being reconfigured to support co-working and collaboration, with a focus on meeting room solutions. There are currently more than 90 million rooms, less than 10% of which have video capability2. As a result, the office meeting room solutions segment is expected to triple by 2024.

Poly brings industry-leading video conferencing, cameras, headphones, audio, and software solutions to HP, enabling customers to create an evenness in meetings between the people in the room and those who aren’t. The combined organization will provide a complete ecosystem of hardware, software, and digital services to create distinct employee experiences, improve workforce productivity, and provide enterprise customers with better visibility, insights, security, and manageability across their hybrid IT environments.

“As ideas around the traditional office role continue to shift, there is a critical need for organizations to enable rich collaboration experiences between personal and remote workers,” said Patrick Moorhead, CEO and Chief Analyst, Moor Insights & Strategy. “Combining Poly and HP is a win-win for both organizations. Most importantly, uniting these two companies will provide end users with the essential hardware, software, and services required to successfully navigate hybrid work experiences now and into the future.”

The addition of Poly HP will help drive innovation and expansion in two key growth areas: peripherals and workforce solutions. Peripherals $110 billion represents an opportunity for the sector growing 9% annually, driven by the need for more immersive experiences2. Workforce solutions represent a $120 billion sector opportunity that is growing at 8% annually, as companies invest in digital services to set up, manage, and secure more distributed IT systems. 2.

With the transaction complete, Dave Shull, CEO of Poly, will join HP as Head of Workforce Services and Solutions, effective November 1. Scholl will lead the newly formed organization focused on driving a broader growth agenda across HP’s commercial services business. He has extensive global experience spanning technology, digital media, operational transformation and business development for this role. Scholl will join HP’s executive leadership team and report to Lorz.

Andy Rhodes will lead the HP-Poly Embedded Business as General Manager, Hybrid Business Solutions and Peripherals. Rhodes, who joined HP in 2018, previously led the company’s personal systems business and built the global peripherals organization. Prior to joining HP, he held a number of senior executive positions at Dell. Rhodes will continue to report to HP Personal Systems’ president, Alex Cho.

HP completed the transaction as an all-cash transaction of $40 per share, which means the total enterprise value is approximately $3.3 billion, including Polly’s net debt. The transaction was funded by a combination of cash balance sheet and new debt.

About HP

HP Inc. is a technology company that believes that one thoughtful idea has the power to change the world. Its range of products and services from personal systems, printers, and 3D printing solutions help bring these ideas to life. Visit http://www.hp.com.

Cautionary statement regarding forward-looking statements

This document contains statements, estimates, expectations or guidelines that constitute forward-looking statements as defined under US federal securities laws based on current expectations and assumptions that involve risks and uncertainties. If risks or uncertainties materialize or assumptions prove incorrect, results could differ materially from those expressed or implied by these forward-looking statements and assumptions. All statements other than statements of historical facts are statements that may be considered forward-looking statements, including, without limitation, statements regarding the transaction between HP and Poly, including any statements regarding the expected benefits of the transaction (including the expected accumulation of earnings and Free cash and expected earnings before interest, taxes, depreciation and amortization (EBITDA), the effect of the transaction on HP’s business, synergies from the transaction, future opportunities, and any other statements regarding HP’s future expectations, beliefs, plans, objectives, results of operations, financial position and cash flows, or future events or performance Words or phrases such as “future,” “expects,” “believes,” “estimates,” “expects,” “intends,” “plans,” “goals,” “progress,” “commits” “lead”, “goals”, “expectations”, “approach”, “research”, “timelines”, “forecast”, “projects”, “will”, “will”, “can”, “should”, “ can, “may,” aim, “expectations,” “direction,” “objectives,” “objectives,” “strategies,” “opportunities,” “potential,” and other terms or expressions Similar to the identification of such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, many of which are beyond the control of companies and are difficult to predict. Therefore, actual results and outcomes could differ materially from what is expressed or expected in such forward-looking statements. The reader should not place undue reliance on these forward-looking statements, which speak only as of their date. Unless legally required, HP undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the effects of the disruption on HP or Poly’s business; The impact of this communication on HP’s stock price and Poly’s ability to retain key employees and maintain relationships with its customers, suppliers, and others with whom it does business; industry, market, economic, political, or regulatory influences beyond HP’s control; HP’s ability to achieve synergies and benefit from the transaction, including business and technology integration; the risk that integration between HP and Poly operations will be materially delayed or more expensive or difficult than anticipated; the nature, cost and outcome of any suit or other legal proceeding; the risk that the cost savings and any revenue synergies and other benefits anticipated from the transaction may not be realized or may take longer than expected to be realized, including as a result of the impact or problems arising from the integration of the two companies; And unknown opponents. Other significant factors that could cause actual results to differ materially from those in the forward-looking statements are described in HP’s filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the fiscal year ended October 31, 2021, as well as in filings Poly with the Securities and Exchange Commission, including its annual report on Form 10-K for the fiscal year ending April 2, 2022. Other unexpected or unknown factors not discussed in this document may have material adverse effects on the forward-looking statements.

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