(HP) Shares of Poly rose more than 48% in premarket on Monday on acquisition by HP Inc. that values the company at $3.3 billion, inclusive of the company’s debt.
The all-cash transaction values Poly at $40 per share and is expected to close by the end of calendar year 2022.
HP expects the acquisition to accelerate its industry opportunity in hybrid work solutions while creating a more growth-oriented portfolio.
Poly’s president and CEO Dave Shull expects the deal to give the company an opportunity to scale and reach out to new markets and channels. He says the transaction offers a compelling value to the company’s shareholders.
HP expects the deal to be immediately accretive to its revenue growth, non-GAAP EPS, and margins. The company expects about $500 million of revenue synergies by 2025.
HP also expects the deal to enhance Poly’s operating margins by about 6% by 2025 and accelerate the target’s revenue growth by 15% CAGR over the first three years after transaction closure.
POLY: NYSE is up +48.17% on premarket, HPQ: NYSE is down -2.86% on premarket
