HP Inc. agreed to buy Poly, a maker of workplace communications products, for $1.7 billion in a bet on the rise of hybrid work.
HP will pay $40 cash for each outstanding share of Poly, a premium of more than 50% from its closing price Friday. The companies valued the deal for Poly, formerly known as Plantronics, at $3.3 billion, including debt.
Poly makes audio and video products, such as headsets, desk phones and other conferencing products. The company is expected to report annual sales of about $1.53 billion for its fiscal year that ends this month, according to analysts surveyed by FactSet.
HP said the deal, expected to close by year-end, would help grow its hybrid-office offerings. The maker of PCs, printers and other computer products said office workers are investing to improve their home setups, while businesses are reconfiguring traditional office spaces to support hybrid work and collaboration.
HP had annual sales of $56.7 billion in its most recent fiscal year that ended in October.
Shares of HP fell 2% to $39 in premarket trading. Poly shares jumped 49% to $39.01.
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