HP Agrees To Snap Plantronics At 53% Premium

HP Inc HPQ agreed to acquire Plantronics Inc 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.