HP bets big on PC Gaming, buys out Kingston's HyperX division
The takeover will complete in Q2 2021
February 25, 2021 / 04:01 PM IST
Hewlett Packard (HP), the multinational technology company most known for its laptops has announced that it plans to acquire HyperX - the gaming division of American technology company Kingston. Kingston is known for its wide range of gaming products that it sells under the HyperX brand along with PC components such as SSD's.
As per the announcement detailed on its website, HP says that it has reached a "definitive" agreement to acquire HyperX for a sum of $425 million. As per the terms, HP will take over the gaming division, the brand name and the portfolio of products that are attached to HyperX, which means Kingston will still retain its line-up of PC components that are not part of the HyperX line such as RAM modules and SSDs.
“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.”
HP already offers a sizeable gaming portfolio of its own including the much lauded OMEN brand under which it has made some well-received gaming peripherals, PCs and laptops. It will look to expand and strengthen its range of gaming products with the HyperX acquisition.
HP says that 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."