In unexpected news today, HP and HyperX (formerly a division of Kingston) jointly issued a statement that HP will acquire HyperX’s portfolio for peripherals and the brand for $ 425 million. Kingston retains the DRAM, Flash and SSD products (those that have HyperX branded are likely to be renamed). Perhaps this is an indication that Kingston wants to stay focused on the memory and storage markets, and to abandon a changing commodity market, while at the same time HP wants to improve its presence in space, along with the brand HP OMEN.
Pending the regulatory review, the transaction is expected to end in the second quarter of 2021, with the acquisition of a non-GAAP to HP in the first full year. The HyperX peripheral range, which includes game headers, microphones, keyboards, mouse pads, mice, power supplies, console accessories and clothing, is expected to be used by HP’s wider gaming ecosystem to expand potential additions to its OMEN series of games. desktops and laptops, as well as the ecosystem for hardware, software and services.
HyperX as a brand has always been a distinct element that is somewhat different from Kingston. Over the past few years, each scholarship we have attended has held separate meetings for each business, while we would both cover in the same room a decade ago. The breakdown of the business obviously enabled Kingston to pack it in case he ever had to download, as it has now done with HP. Kingston still retains the focused RGB-laden DRAM and SSD ventures, though it will likely be sold under Kingston or a separate new brand that we will learn about over time. It is unclear whether HyperX sponsorships from eSports teams are also part of the deal, whether it will be transferred to HP, or they will stay at Kingston.
In the press release, HP states that the computer hardware industry will have an addressable market of $ 70 billion by 2023, and the global peripherals market (games and non-games) will grow to $ 12.4 billion by 2024. be an excessively large part of that year-on-year growth, and that HyperX’s brand recognition will help HP ‘advance its leadership in personal systems by modernizing and extending computing experiences to valuable boundaries’. In non-corporate languages, it just means that HP sees the collective value by enabling its own top-branded accessory systems to enhance the overall experience. For a price, of course, though, there will undoubtedly be synergies, as HP may be able to motto some of its own HP OMEN peripherals that may not have had much distribution.
As the deal is expected to end in the second quarter, it will be interesting to see if HP does a trade reorganization with HyperX, such as ‘HyperX at HP’, or lets it go. If we get more information, we will add this news release.
Source: https://press.hp.com/us/en/press-releases/2021/hp-inc-to-acquire-hyperx.html