FILE PHOTO: A screen displays the logo for HP Inc. at the New York Stock Exchange (NYSE) in New York, U.S., November 18, 2019. REUTERS/Brendan McDermid

March 28, 2022

(Reuters) -HP Inc said on Monday it would buy audio and video devices maker Poly for $1.7 billion in cash as it looks to capitalise on the hybrid work led boom in demand for electronic products.

Shares in HP, which expects the deal will position it for long-term growth, fell 1.4% in premarket trade.

The company has offered $40 for each share of Poly, formerly known as Plantronics, which represents a premium of about 53% to the stock’s last closing price. Including debt, the deal is valued at $3.3 billion.

“The rise of the hybrid office creates a once-in-a-generation opportunity to redefine the way work gets done,” HP Chief Executive Officer Enrique Lores said.

With the global healthcare crisis boosting the need for hybrid work, the market has seen several acquisitions, including business software maker’s $27.7-billion purchase of workplace messaging app Slack Technologies Inc last year.

Poly, whose shares rose 49% in premarket trade, said it would be required to pay a fee of $66 million if the deal is terminated.

The transaction is expected to close by the end of 2022.

(Reporting by Tiyashi Datta in Bengaluru; Editing by Aditya Soni and Vinay Dwivedi)

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