HP Inc. announced that it has got into a definitive agreement to acquire HyperX, the gaming division of storage giant Kingston. The company stated that this buyout aligns with its focus to grow its Personal Systems business. HyperX is a renowned name in the gaming peripherals domain and has an avid pool of fans.
Kingston, under HyperX brand manufactures headsets, keyboards, mice, mousepads, USB microphones, and console accessories.
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.
While HP has its own gaming portfolio under OMEN brand, the acquisition of HyperX will also add value to this. Beyond devices, HP is driving software innovation with OMEN Gaming Hub, a destination for players to connect, customize, 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.
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.