HP has announced that it will acquire Poly, an audio and video devices manufacturer, as it works to optimize on the popularity of hybrid work.
The computer hardware company will buy Poly for $1.7 billion in cash, marking a significant shift in how electronics firms are approaching the future of work.
The demand for hybrid working tools has grown tenfold in the last several months, leading the market to see multiple acquisitions and mergers. For instance, Salesforce purchased messaging app Slack last year for $27.7 billion.
HP has offered $40 per share of Poly, around 53% of the stock’s most recent closing price. Accounting for debt, the total deal valuation sits at around $3.3 billion.
Through this new deal, HP hopes that it can position itself for sustainable growth, a necessary trajectory after its shares fell 1.4% in premarket trade. The transaction is anticipated to be completed by the end of the year.
“The rise of the hybrid office creates a once-in-a-generation opportunity to redefine the way work gets done,” said Enrique Lores, CEO of HP.