HP (NYSE:HPQ)
HP (NYSE:HPQ) completes the acquisition of computer accessories manufacturer Poly (NYSE:POLY). In a statement, HP President and CEO Enrique Lores remarked, “This is a historic day for our business as we recognize the merging of two legendary firms that are innovating at the heart of hybrid work.”
According to Patrick Moorhead, CEO and chief analyst of Moor Insights & Strategy, businesses must keep enhancing the collaboration opportunities for both on-site and remote workers. Shares of HP (NYSE:HPQ) decreased by almost 1% in Monday’s premarket trade to $31.12. As a result of weaker PC demand, Wells Fargo downgraded HP (NYSE:HPQ) earlier this month, citing an “increasing scenario” in which its shares underperform on a comparative basis through the end of this year and into 2023.
More on the HP (NYSE:HPQ) and Poly (NYSE:POLY) Merger
HP (NYSE:HPQ) , based in Palo Alto, California, stated that it anticipates the transaction to increase sales, non-GAAP operating profit, and non-GAAP earnings per share in the fiscal year 2023 following the merger. As companies and their employees look for new ways to work and collaborate in a hybrid environment, HP and Poly (NYSE:POLY) have announced their merger. About 75% of office workers are making investments to upgrade their living arrangements with a focus on meeting room solutions, conventional office spaces are also being renovated to facilitate hybrid work and collaboration. Currently, less than 10% of the world’s more than 90 million rooms have video capabilities. The office meeting room solutions market is therefore anticipated to quadruple by 2024. HP’s deal (NYSE:HPQ) will see it pay $40 per share in cash, as initially disclosed in March.
With Poly (NYSE:POLY) on board, HPQ will be better able to innovate and grow in its two main growth sectors, workforce solutions, and peripherals. The demand for more immersive experiences is driving a $110 billion sector opportunity for peripherals that are rising at 9% yearly. As businesses invest in digital services to set up, manage and secure more remote IT environments, the $120 billion market opportunity for workforce solutions is growing 8% annually.
Featured Image: Megapixl @Hcazenave
Author Jowi Kwasu 
