- HP Inc (NYSE:HPQ) agreed to acquire Plantronics Inc (NYSE:POLY) for an all-cash transaction for $40 per share, implying a total enterprise value of $3.3 billion.
- The purchase price of $1.7 billion implied a premium of 52.7% to Plantronics' March 25 closing price of $26.20, Reuters reports.
- Plantronics is a leading workplace collaboration solution provider. HP saw $500 million of revenue synergies by FY25 and accelerated Poly's revenue growth to a 15% CAGR over the first three years after closing.
- Additionally, HP saw the transaction improve Poly's operating margins by six percentage points from current levels by FY25, driven by scale efficiencies across the supply chain, manufacturing, and overhead.
- CEO Enrique Lores said, "Combining HP and Poly creates a leading portfolio of hybrid work solutions across large and growing markets."
- HP held $3.4 billion in cash and equivalents as of January 31.
- Price Action: POLY shares traded higher by 50.7% at $39.49 on the last check Monday.
