Wednesday, February 24th 2021
HP to Acquire HyperX Gaming Peripherals Brand from Kingston, Which Retains Memory Business
HP Inc. today announced a definitive agreement to acquire HyperX, the gaming division of Kingston Technology Company. The acquisition supports HP's strategy to drive growth in its Personal Systems business, where gaming and peripherals are attractive segments. HyperX's award-winning product portfolio spans a range of gaming peripherals, including headsets, keyboards, mice, mouse pads, USB microphones, and console accessories.
"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," said Enrique Lores, President and CEO, HP Inc. "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."
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 2023.1 The global peripherals market is expected to grow to $12.2 billion by 2024, with gaming peripherals representing a disproportionate share of this growth.
"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 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, 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.
"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," said Enrique Lores, President and CEO, HP Inc. "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."
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 2023.1 The global peripherals market is expected to grow to $12.2 billion by 2024, with gaming peripherals representing a disproportionate share of this growth.
"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 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, 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.
29 Comments on HP to Acquire HyperX Gaming Peripherals Brand from Kingston, Which Retains Memory Business
So he says as he watches his stock price rising......
no no nono..... this is not good....
:(
Maybe HP will get better quality peripherals now?
HP already has Omen gaming peripherals and HyperX isn't exactly top-dog in this product category.
If you put HyperX and Omen products next to each other, it would be hard to find any differences other than brand logo. HP could already manufacture similar products, so only justification I can find is to start using the HyperX brand of products.
I doubt both Kingston and HP will be making products under same HyperX brand, so will HP have to rename HyperX? Did they just throw away $500 million for nothing?
HyperX might no have the best of best products, but are far more unique and inspired for gamers IMHO.
Kingston - the pioneer of SSD specification bait and switch - release a limited introductory run of a fast version for reviews (firmware 505), then immediately switch to slow NAND (firmware 506) for the mass produced model with the SSDNow V300.
When called out by AnandTech, Kingston basically flipped them the bird and hid behind the "up to XXX performance" marketing.
I really hope it's not going the other way around.Omen has a reputation of "relatively expensive" and HyperX has a reputation of "relatively cheap".
HP already has a decent lineup of cheap Omen-branded gear, but I assume it doesn't sell that well. At the same time Kingston lost their ground after years of dumping low-quality generic stuff as re-branded gaming parts/accessories/peripherals, and regardless of their constant obnoxious claims of "#1 in the world", they've already lost their footing to smaller and more flexible brands (who sells the exact same generic re-branded crap, but with higher QA standards, better support, and at lower margins). Just like w/ Razer and Steelseries, quality issues will eventually bite you in the ass.
Rest in peace HyperX.
Watch the quality of the hardware and software PLUMMET.
Omen was never higher profile, unless those overpriced Cubes PC's. Using marketing "tricks" doesn't make brands stand for so long( well Apple can). HyperX used other manufacters for their products, but where products with an identity and a distinguished appeal to gamers.
HP since the facelift, and with the end of Toshiba laptops market got the opportunity to make HP relevant again, and their recent hardware is solid, not perfect, but got alot better than overpriced Asus for example.
If they pull this acquisition right, they can reach to Asus ROG status quo .
The problem with some brands buying some minor brands, is the greed for profit, and other like Asus got much more greedy since it had not real competition to domestic market( in my country at least).
This is weird
*hugs her HyperX Alloy Origins Core w/pudding keycaps*
One of three things is going to happen thanks to this - 1) HP's gonna jack up prices on HyperX peripherals 2) HP's going to jack up prices AND the quality is going to go down the crapper or 3).....
wait, nevermind. And I'm pretty sure there's only gonna be one thing happening from this - see 2.....
I'm sad you guys :(