In some unexpected news today, HP and HyperX (formerly a division of Kingston) have jointly released a statement that HP will acquire the HyperX portfolio of gaming peripherals and the brand for $ 425 million. Kingston retains DRAM, Flash and SSD products (HyperX branded ones will likely change names). Perhaps it is indicative that Kingston wants to remain focused on the memory and storage markets, and divest itself of a variable commodity market, while at the same time HP seeks to increase its presence in the space alongside its HP OMEN brand.
Pending regulatory review, the deal is expected to close in the second quarter of 2021, with the acquisition accumulated in a non-GAAP for HP in the first full year. The HyperX range of peripherals, including gaming headsets, microphones, keyboards, mouse pads, mice, power supplies, console accessories and apparel, are expected to be used by HP’s broader gaming ecosystem to expand add-ons. potentials for their OMEN game series. desktops and laptops, in addition to creating that ecosystem for hardware, software and services.
HyperX as a brand has always been a distinct element, somewhat separate from Kingston – in recent years, at each trade show we attend, we have held separate meetings for each company, whereas a decade ago we covered both in the same room. This unbundling of the business has obviously allowed Kingston to package it if it ever needs to download, as it has now done with HP. Kingston still retains the DRAM and SSD businesses focused on RGB gaming, though they are likely to be sold under Kingston or a separate new brand that we will learn of in due course. It’s unclear if HyperX’s sponsorships of eSports teams are also part of the deal, whether they will transfer to HP or remain in Kingston.
In the press release, HP cites that the PC hardware industry is set to have an addressable market of $ 70 billion by 2023, and that the global market for peripherals (games and non-games) will grow to $ 12.4 billion by 2024. HP claims that gaming peripherals will be a disproportionately large element of that year-over-year growth, and that HyperX brand recognition will help HP “advance its leadership in personal systems by modernizing computing experiences and expansion to valuable adjacencies “. In non-corporate terms, that just means that HP sees the collective value in enabling its own systems with top-brand accessories to enhance the overall experience. For a price, naturally, although there will certainly be some synergies, as HP may override some of its own HP OMEN peripherals that may not have had a wide distribution.
With the deal expected to close in the second quarter, it will be interesting to see if HP does any rebranding with HyperX, such as ‘HyperX by HP’, or leave it as is. If we get more information, we will add it to this news post.