- Poly, formerly known as Plantronics, jumped nearly 50%
- The audio device maker is to be bought out by HP
- The deal is for $1.7B in cash
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Shares of Poly (NYSE: POLY), formerly known as Plantronics, jumped nearly 50% with the opening of Monday’s market. The upside action followed the striking news that the audio device maker is to be bought out by industry giant HP for a total of $1.7B in cash. It seems that the tech hardware behemoth is making a play towards the hybridization of work routines in its acquisition of Poly, which specializes in leading headsets and other audio and video devices.
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The new hybrid work structure was born out of adapting to workplace restrictions and lockdowns, but many believe the new model is here to stay. The structure means that a new wave of hardware products is in high demand in order to facilitate working from home. Hence the play from HP, who clearly attest to the long-term need for these products as the hybrid model becomes more solidified. Clarified further by HP CEO Enrique Lores:
“The rise of the hybrid office creates a once-in-a-generation opportunity to redefine the way work gets done”
HP paid $40 for each share of Poly, representing a premium of 53% to the stock's closing price on Friday. Poly shares are currently trading at a gain of just under 50% in early Monday trading. The company is also expected to pay a fee of $66M if the deal is terminated. Should everything run accordingly, the deal is expected to close by the end of 2022.
The acquisition isn’t the first big-tech play for hybrid working, with Salesforce.com’s nearly $30B acquisition of workplace messaging app Slack Technologies remaining the most notable.