HP Completes HyperX Acquisition For $425 Million
by Gavin Bonshor on June 2, 2021 5:00 PM EST- Posted in
- Peripherals
- Gaming
- HP
- Kingston
- Headset
- HyperX
- Mice
- Acquisition
- Microphones
- M&A
- Keyboards
Back in February, we revealed that HP was set to acquire the HyperX brand, the gaming subsidiary of Kingston Technology. HyperX has been the gaming branding for Kingston Technology over the years, with memory, flash, SSDs and peripherals all marketed under the HyperX banner. Like many companies with its own gaming-focused brand, Kingston has kept the brand as a disaggregated entity in strategy and marketing. Today, the acquisition by HP of the HyperX brand has been completed for a fee of $425 million, with the acquisition accretive on a non-GAAP for the first full year of ownership.
HyperX has been synonymous with the gaming industry for years, from its popular and well-priced Cloud series of gaming headsets to its SSD storage drives and all the way to its sponsorship of some of the biggest personalities in gaming. This includes popular streamers such as Pokimane, Dendi, and some of the most notable teams in professional eSports, such as Cloud 9, Reign, and Panda. Current sponsorships will remain with the HyperX brand, and transfer over as part of the acquisition.
Some of the features on the HP Omen 30L Gaming Desktop with an NVIDIA GeForce RTX 3080
HP and Kingston/HyperX jointly announced the acquisition back in February 2022. HP quoted that the PC hardware industry is set to be worth around $70 billion by 2023, and the global peripherals market to grow to $12.4 billion in 2024. HP currently retails and markets its OMEN series of gaming desktops and laptops. The HyperX brand could potentially be a big part of that in the future, with a view to a larger gaming ecosystem. Tapping into both elements of the gaming and PC hardware market seems a highly desirable choice by HP. It could be one of the key reasons for the acquisition and bolster its visibility and presence as a gaming-focused brand.
One of the most notable aspects of the buyout is that Kingston is retaining the DRAM, Flash, and SSD products. Kingston may intend to focus on the memory and storage markets, although it's also plausible to rebrand its current DRAM memory and storage lines. All this remains to be seen, but the acquisition does see the transference of all the other HyperX elements such as peripherals, audio, power supplies, console accessories, and apparel to HP.
How HP intends to market and amalgamate HyperX into its business and existing product ranges remains to be seen. Still, these are questions that HP should answer in time with any brand reorganization likely to be addressed relatively quickly.
Source: HP
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Techie2 - Wednesday, June 2, 2021 - link
With HP killing off customers left and right due to inferior office and consumer products they need to find a revenue source. Since switching to 90 day warranted disposable appliances the company has changed from selling durable goods to selling trash for cash. It's easy to see a dead end company spiraling out of control. You can be certain that HP will destroy the HyperX product line like every other acquisition they have previously made. Hewlett and Packard must be rolling over in their graves at the cluster HP became.Makaveli - Wednesday, June 2, 2021 - link
Facts!!!philehidiot - Thursday, June 3, 2021 - link
Came here to say just that. They have the touch of death for every brand they acquire. Anyone working at HyperX should be abandoning ship as fast as possible. What HP did to Palm and consumers was disgusting, they manage to make printers even more hateful than anyone else... My parents bought one of their printers and then its me that has to deal with it. It has *games* on it. In order to access any of the printer functions you have to go through the games section.The printer is terrible but they had R&D to spend on putting a games console onto the printer. It's not as if you can even use it to pass the time whilst it is printing and it's just gonna end up with the kids messing with the wretched thing.
Honestly,the company is run by cockwombles of the highest order.
Samus - Friday, June 4, 2021 - link
It's also worth mentioning HP's most famously destructive buyout: Palm. Even worse than Compaq, because at least they kept, to this day, some Compaq DNA. But they totally destroyed Palm because in 2011 "smartphones weren't the future."Samus - Friday, June 4, 2021 - link
The last decent consumer notebook they made was in my opinion the Folio 13 and that was Sandy\Ivybridge. The Elitebook and some of the Ryzen Probooks are the only machines to consider anymore, and at their retail prices you are better off with Dell (speaking of turnarounds) Latitudes. HP desktops have been shit for years and as a previous HP partner in IT, the downward spiral the last decade has been depressing it's like corporations - at least in the USA - bailed on Lenovo after Superfish only to go right back and at the prices Lenovo sells at who can blame them.I've been migrating clients to Dell for the last few years and haven't regretted it. Ethically it was challenging after the BS they pulled with Intel over AMD two decades ago but it is what it is.
Rudde - Thursday, June 3, 2021 - link
If they announced the acquisition in February 2022, isn't it a little early to make a report of it? You seem very confident about it too, as if you could know about the future.philehidiot - Thursday, June 3, 2021 - link
They also have a formula for transparent aluminium.0iron - Friday, June 4, 2021 - link
Funny that original article was originally written expected to complete in Q2 2013. The different is it was corrected shortly after that while this one still refer to the future 😅haplo602 - Thursday, June 3, 2021 - link
RIP HyperX .... I'll have to find a new brand of headset ....It's not that the quality of product would suffer much, but HP support is non-existent ...
ikjadoon - Thursday, June 3, 2021 - link
HP seems to swallow companies whole and spit out feeble remains. HP has acquired 3-4 companies nearly every year from 1989 to 2010.In the consumer sphere, HP acquired Compaq ($25 billion), Snapfish ($300 million), Voodoo PC (unknown), Palm ($1.2 billion), and now HyperX ($425 million).