HP Inc. has 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 in cash for each outstanding share of Poly, a premium of more than 50% over its closing price on Friday. The companies valued the deal for Poly, formerly known as Plantronics, at $3.3 billion, including debt.
Poly manufactures audio and video products, such as headsets, desk phones and other conferencing products. The company expects to report annual sales of about $1.53 billion for its fiscal year ending this month, according to analysts surveyed by FactSet.
HP said the deal, expected to close by the end of the year, will help increase hybrid-office offerings. The maker of PCs, printers and other computer products said office workers are investing in improving 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.
HP shares fell 2% to $39 in premarket trading. Poly shares jumped 49% to $39.01.
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