HP Inc. (HPQ) has entered a definitive agreement to acquire Poly (POLY) in an all-cash deal for $40 per share, implying a total enterprise value of $3.3 billion, inclusive of Poly's net debt. HP said Poly will help drive the growth of the company's peripherals and workforce solutions businesses.
HP expects the acquisition to be immediately accretive to revenue growth, margins, and non-GAAP EPS at close. The company expects to achieve $500 million of revenue synergies by fiscal 2025 and accelerate Poly's revenue growth to an approximately 15% CAGR over the first three years after closing.
HP noted that it remains committed to aggressively buying back shares of at least $4 billion in fiscal 2022, and to returning significant capital to shareholders while continuing to invest in growth.
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