HP Inc. to Acquire HyperX For $425 million
HP Inc. to Acquire HyperX
Transaction to accelerate HPs 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 HPs strategy to drive growth in its Personal Systems business, where gaming and peripherals are attractive segments. HyperXs 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 were 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 HPs 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 HyperXs 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.
For 18 years, HyperXs 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 WERE 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.
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.