Earlier today, HP Inc. announced an agreement to acquire HyperX, Kingston Technology’s gaming division. The acquisition aims to drive growth in HP’s Personal Systems business where gaming and peripherals are one of the attractive segments.
“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.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.”
-Enrique Lores, President and CEO, HP Inc
“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”
-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 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”
-David Sun, Co-founder and COO, Kingston
In the agreement, HP will pay $425 million to acquire HyperX’s gaming peripherals portfolio which consists of their headsets, keyboards, mice, mousepads, USB microphones, and console accessories. Kingston Technology Inc. on the other hand, will retain DRAM, flash, and SSD products for gamers and enthusiasts. The acquisition is on a non-GAAP basis to HP in the first year after closing. The transaction is expected to close in the second quarter of 2021.
HP is definitely a renowned brand in the PC business, its gaming arm, Omen however isn’t as popular compared to the gaming divisions of its competitors such as Dell’s Alienware and ASUS’ Republic of gamers. The acquisition will surely improve HP’s market presence in gaming. Based on the investor relations press release, it seems like HP Inc. plans Omen and HyperX to co-exist as the press-release mentioned “adding HyperX to HP’s broader gaming ecosystem will deliver innovative new experiences across everything gamers see, hear, and touch.”