Leading technology company HP Inc. announced that it has reached a definitive agreement with Kingston Technology Company to acquire its gaming accessory division HyperX.
According to sources familiar with the development, the acquisition of HyperX will support HP’s greater strategy to drive growth in its Personal Systems business, where gaming and peripherals are attractive segments.
It is interesting to find that HyperX’s award-winning product portfolio spans a range of gaming peripherals, including headsets, keyboards, mice, mousepads, USB microphones, and console accessories.
Expressing happiness over the new move, HP Inc President and CEO Enrique Lores said HyperX is a leader in peripherals whose technology is trusted by gamers around the world and HP is 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,” said Enrique Lores.
As per Arvian Research, PC gaming continues to be one of the most popular forms of video gaming, with the PC hardware industry anticipated to be worth $70 billion by 2023.
“There is a growing surge globally to use gaming as an alternative game that can be played inside home and lots of youngsters are hoocked to it. This has really skyrocketed the demand for the global peripherals market that it is expected to grow to $12.2 billion by 2024. Also, out of the overall peripheral market, gaming peripherals represent a disproportionate share of this growth,” said Arvian Research.
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.
Commenting on the development, Kingston Cofounder and CEO John Tu 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.
“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,” said John Tu
HP has built a large and growing global gaming portfolio in recent years, led by its OMEN brand and a world-class ecosystem of hardware, software, content, and services. The company continues to push progression in gaming with powerful devices like the OMEN 15 gaming laptop and the HP Pavilion Gaming 16 laptop.
Beyond devices, HP is driving software innovation with OMEN Gaming Hub, a destination for players to connect, customise, and explore their gear and games. Adding HyperX to HP’s broader gaming ecosystem will deliver innovative new experiences across everything gamers see, hear, and touch.