Transaction to accelerate HP’s growth in peripherals and expand its gaming ecosystem
HP Inc. today announced a definitive agreement to acquire HyperX, the gaming division of Kingston Technology Company. The acquisition supports HP’s strategy to drive growth in its Personal Systems business, where gaming and peripherals are attractive segments. HyperX’s award-winning product portfolio spans a range of gaming peripherals, including headsets, keyboards, mice, mousepads, USB microphones, and console accessories.
“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,” 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 being worth $70 billion by 2023. 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.”
Under the terms of the agreement, HP will pay $425 million, subject to customary working capital and other adjustments, to acquire HyperX’s 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.