HP Closes $3.3 Billion Deal with Poly, Boosts Hybrid Work

HP has completed its $3.3 billion acquisition of Poly, the longtime provider of workplace collaboration solutions. Look for the deal to propel HP’s strategy, strengthening opportunities in hybrid work solutions, the company said.

During an HP executive forum last week, Enrique Lores, president and CEO of HP, outlined the company’s priorities. HP is betting on the hybrid workforce and unveiled a series of new products to accommodate the trend.

HP’s Enrique Lores

“Hybrid work is here to stay,” Lores said. “I don’t know any companies that have convinced employees that they need to be back in the office five days per week, every week of the month. People are going to continue to work from home and from the office. This is a tremendous opportunity for us, for our devices, for new services.”

He added: “The fact that we are a strong company on the consumer side and on the commercial side gives us the opportunity to bridge the worlds as customers will continue to work from home.”

Poly brings video conferencing solutions, cameras, headsets, voice and software to HP.

“Approximately 75% of office workers are investing to improve their home setups. Traditional office spaces are also being reconfigured to support hybrid work and collaboration, with a focus on meeting room solutions. Currently, there are more than 90 million rooms, of which less than 10% have video capability. As a result, the office meeting room solutions segment is expected to triple by 2024,” according to HP.

Channel Partners

S&P Global Market Intelligence’s Raul Castanon

Raul Castanon is industry analyst for S&P Global Market Intelligence.

“I feel that that [Poly] was an attractive target because they have not just an extensive market footprint and channel partners. But also, they were already getting into areas I think that were ahead of the curve in some ways with some technologies.”

Castanon said that included not only work-from-home technologies but also an emphasis on new office spaces that require flexibility and greater emphasis on collaboration.

When it comes to HP partners, Castanon added that they will gain a broad set of new, more innovative, but complementary products.

“I think it’s logical to assume that they could get more and more attractive deals from HP, if they grow their share of the products rather than dealing with separate vendors. Also … HP is probably accelerating with the new technologies what might have taken them a much longer time to play catch up with.”

Leadership Changes

Poly CEO Dave Schull will head HP’s workforce services and solutions business starting Nov. 1. Andy Rhodes, who built HP’s global peripherals organization, will run the combined HP-Poly business as general manager, hybrid work solutions and peripherals. Rhodes will continue to report to HP personal systems president, Alex Cho.