Kingston Technology has written to HEXUS with confirmation that it has some to a definitive agreement that HP will acquire its HyperX gaming division branded product portfolio. HP has agreed to pay US$425 million for the gaming peripherals line which covers headsets, keyboards, mice, mouse pads, USB microphones, and console accessories. Importantly, the agreement doesn’t cover DRAM and Flash memory products, Kingston's core business in and outside of gaming. The official release says that "Kingston will retain the DRAM, flash, and SSD products for gamers and enthusiasts," but I would think that they will have to go forward in a re-branded state.
A contemporary HyperX gaming setup
As is usually the case when these deals are done, CEOs from both parties issued statements about how good the deal will be for both companies, customers, and creating corporate synergies. What is certain is that HP wants to drive growth in its personal systems business where gaming is a very attractive niche. HP's President and CEO, Enrique Lores, describes this as "expanding into valuable adjacencies". With HyperX under his wing Lores believes that the expanded HP portfolio will be a worthwhile driver towards this goal.
A contemporary HP Omen PC gaming setup
Of course those interested in PC gaming and peripherals will be aware that HP currently appeals to the gaming market via its Omen brand, and somewhat less directly via the Pavilion brand. If you check out HP's product pages you can see that HP already has a number of Omen branded laptops, desktops, monitors, and accessories. I was less aware of the range of accessories available, but it seems quite extensive, particularly in the number of mice available. It would be natural to merge its most successful accessories into HyperX branded lines going forward. I will be interested to see if the Omen laptops and desktops become HyperX branded products in the future or the existing HP gaming brand will persist in this area.
The transaction is expected to close in calendar Q2 2021, pending regulatory review and other customary closing conditions.
