HP Inc. expanding its footprint in the margin and multi-million-dollar markets, with their first purchase of a margin company.
The PC-and-printer pioneer said Wednesday that it expects to acquire HyperX, a game division of Kingston Technologies Co., for $ 425 million. HyperX’s
product package includes gaming peripherals such as headphones, keyboards,
mice, mouse pads, USB microphones and token resources.
“Gaming is a major growth area in the PC industry,” Alex Cho, president of HP’s Personal Systems division, told MarketWatch. “It’s not just cycling but global change” as PCs continue to grow as a home entertainment platform, he said.
The coronavirus pandemic, in particular, has accelerated the movement. The global market for margins is expected to grow to $ 12.2 billion by 2024, according to HP, and games make up 37% of the U.S. marginal market, and 53% in China.
The company expects to report first-quarter fiscal results Thursday. Analysts surveyed by FactSet expect HP to earn a share of 66 cents on sales of $ 15 billion.
HP HPQ Stock,
up 17% over the past year. Wider SPX 500 S&P Index,
up 24% over the last 12 months.