HP Inc. to Acquire HyperX

Rhea-AI Summary

HP Inc. has entered a definitive agreement to acquire HyperX, Kingston Technology's gaming division, for $425 million. This acquisition aims to bolster HP's growth in the lucrative gaming peripherals market, expected to reach $12.2 billion by 2024. HyperX's portfolio includes top-tier gaming headsets, keyboards, and accessories. The deal, anticipated to close in Q2 2021, positions HP strategically to enhance its gaming ecosystem and further innovate in the Personal Systems sector.

Positive

• Acquisition of HyperX for $425 million strengthens HP's gaming peripherals portfolio.
• HyperX's established brand and product range expected to drive new growth opportunities.
• The gaming peripherals market is projected to grow significantly, supporting HP's expansion strategy.
• Acquisition expected to be accretive on a non-GAAP basis in the first year.

Negative

• None.

Transaction to accelerate HP’s growth in peripherals and expand its gaming ecosystem

PALO ALTO, Calif., Feb. 24, 2021 (GLOBE NEWSWIRE) -- HP Inc. today announced a definitive agreement to acquire HyperX, the gaming division of Kingston Technology Company. The acquisition supports HP’s strategy to drive growth in its Personal Systems business, where gaming and peripherals are attractive segments. HyperX’s award-winning product portfolio spans a range of gaming peripherals, including headsets, keyboards, mice, mouse pads, USB microphones, and console accessories.

“HyperX is a leader in peripherals whose technology is trusted by gamers around the world and we’re thrilled to welcome their outstanding team to the HP family,” said Enrique Lores, President and CEO, HP Inc. “We continue to advance our leadership in Personal Systems by modernizing compute experiences and expanding into valuable adjacencies. We see significant opportunities in the large and growing peripherals market, and the addition of HyperX to our portfolio will drive new sources of innovation and growth for our business.”

PC gaming continues to be one of the most popular forms of video gaming, with the PC hardware industry anticipated to be worth $70 billion by 2023.¹ The global peripherals market is expected to grow to $12.2 billion by 2024, with gaming peripherals representing a disproportionate share of this growth.

“HyperX products are designed to meet the most rigorous demands of all gamers – from casual to the most hardcore – giving them a winning edge and helping them stay on top of their game,” said John Tu, Co-founder and CEO, Kingston. “Both of our companies thrive because we focus on our employees and share the same core values and culture. David Sun (Co-founder and COO) and I saw the possibilities for the HyperX business and its employees and we both realized that this change brings a brighter future for HyperX.”

HP has built a large and growing global gaming portfolio in recent years, led by its OMEN brand and a world-class ecosystem of hardware, software, content, and services. The company continues to push progression in gaming with powerful devices like the OMEN 15 gaming laptop and the HP Pavilion Gaming 16 laptop. Beyond devices, HP is driving software innovation with OMEN Gaming Hub, a destination for players to connect, customize, and explore their gear and games. Adding HyperX to HP’s broader gaming ecosystem will deliver innovative new experiences across everything gamers see, hear, and touch.

Under the terms of the agreement, HP will pay $425 million, subject to customary working capital and other adjustments, to acquire HyperX’s gaming peripherals portfolio. Kingston will retain the DRAM, flash, and SSD products for gamers and enthusiasts. The acquisition is expected to be accretive on a non-GAAP basis to HP in the first full year following closing. The transaction is expected to close in calendar Q2 2021, pending regulatory review and other customary closing conditions.

About HyperX
For 18 years, HyperX’s mission has been to develop gaming solutions for every type of gamer and the company is consistently recognized for delivering products that provide superior comfort, aesthetics, performance, and reliability. Under the tagline of “WE’RE ALL GAMERS,” HyperX gaming headsets, keyboards, mice, USB microphones, and console accessories are the choice of everyday gamers as well as celebrity ambassadors, pro gamers, tech enthusiasts, and overclockers worldwide because they meet the most stringent product specifications and are built with best-in-class components.

About HP
HP Inc. creates technology that makes life better for everyone, everywhere. Through our product and service portfolio of personal systems, printers, and 3D printing solutions, we engineer experiences that amaze. More information about HP Inc. is available at http://www.hp.com.

Editorial contacts

HP Inc. Media Relations
MediaRelations@hp.com

HP Inc. Investor Relations
InvestorRelations@hp.com

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¹ Sources: VGA24/7, DFCint, NewZoo, Steam - https://www.wepc.com/statistics/pc-gaming/

 

FAQ

What is HP's acquisition of HyperX about?

HP has agreed to acquire HyperX, Kingston Technology's gaming division, for $425 million to enhance its gaming peripherals segment.

When is HP's acquisition of HyperX expected to close?

The acquisition is anticipated to close in calendar Q2 2021, pending regulatory review.

How much is HP paying for HyperX?

HP will pay $425 million for the acquisition of HyperX's gaming peripherals portfolio.

What market opportunities does the HyperX acquisition present for HP?

The acquisition allows HP to capitalize on the growing gaming peripherals market, projected to reach $12.2 billion by 2024.

Will the HyperX acquisition impact HP's financials?

The acquisition is expected to be accretive to HP on a non-GAAP basis in the first full year following the closing.