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August 29, 2022
The deal is expected to bolster HP’s strategy to create a more growth-oriented portfolio, strengthen its growth in hybrid work solutions, and position the combined organization for long-term sustainable growth and value creation, HP reports. HP expects the transaction, first announced in March, to be accretive to revenue, non-GAAP operating profit and non-GAAP EPS in FY23 post-merger.
“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,” says 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. T”
Poly brings video conferencing solutions, cameras, headsets, voice and software to HP. The combined organization will deliver a complete ecosystem of devices, software, and digital services to create premium employee experiences, improve workforce productivity, and provide enterprise customers with better visibility, insights, security, and manageability across their hybrid IT environments, HP reports.
The addition of Poly will help HP to drive innovation and scale in two of its key growth areas: peripherals and workforce solutions, according to HP.
With the transaction completed, Poly CEO Dave Shull will join HP as President, 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 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 global peripherals organization. Prior to HP, he held a number of 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, inclusive of Poly’s net debt. The transaction was financed through a combination of balance sheet cash and new debt.
Sources: Press materials received from the company and additional information gleaned from the company’s website.
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