HP has made an official announcement that it is in the process to acquire Hyper X – a brand that sells gaming accessories and is a gaming division of Kingston Tech Company. The major aim behind this move is to expand their gaming ecosystem as well as promote the growth of the company.
Enrique Lores, the CEO and President of HP Inc. said:
“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”
The acquisition of Hyper X by HP Inc. is a strategy of the company that supports its motive of growth in its personal systems business because gaming and peripherals are attractive systems. Hyper X is a brand very well-known for its gaming accessories like keyboards, headsets, mice, USB microphones and much more.
In order to acquire Hyper X, HP Inc. is paying $425 million. According to the HP media release:
“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.”
HP Inc. has made a claim that PC gaming continues to be one of the most popular forms of gaming in the gaming industry. The PC hardware industry is expected to be worth $70 billion by the year 2023. Other than this the global peripherals market is going to grow to $12.2 billion by the year 2024.
The CEO and Co-Founder of Kingston Company, John Tu says:
“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.”
He further said:
“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.”