Enrique Lores, the President and CEO of HP, said, “Combining HP and Poly creates a leading portfolio of hybrid work solutions across large and growing markets. Poly’s strong technology, complementary go-to-market, and talented team will help to drive long-term profitable growth as we continue building a stronger HP.”
The CEO of Zoom Video Communications (NASDAQ: ZM), Eric Yuan, said, “Bringing the Poly and HP offerings together will unlock new opportunities to partner with Zoom and turn any space into a hub for dynamic video collaboration.”
The transaction is expected to close by the end of this year and generate revenue synergies of $500 million for HP by Fiscal Year 2025. Further, the deal will help POLY’s revenue to grow at a CAGR of around 15% in the first three years following the completion of the transaction.
California-based Plantronics manufactures audio communications equipment and solutions for businesses and consumers. Its products support unified communications, mobile use, gaming and music.
Headquartered in Palo Alto, HP produces and offers a wide variety of hardware components as well as software and related services to consumers, small and medium-sized businesses, and large enterprises, including customers in the government, health, and education sectors.
After the deal was announced, HPQ stock was trading 1.5% down in the pre-market session on Monday.
Overall, the stock has a Hold consensus rating based on one Buy, four Holds and one Sell. HP’s average price target of $36.83 implies 7.6% downside potential. Shares have gained 31.7% over the past six months.
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (NYSE: SEMR), the world’s biggest website usage monitoring service, offers insight into HP’s performance.
According to the tool, compared to the previous year, HP’s website traffic registered a nearly 10% decline in global visits in February. Moreover, the website traffic has decreased 18.1% year-to-date against the same period last year.
This acquisition is expected to boost HP’s portfolio and strengthen its position in the hybrid work solutions segment, thus helping the company achieve sustainable growth in the long term.
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