Plantronics (NYSE:POLY) stock is rocketing higher on Monday thanks to a massive $3.3 billion deal with HP (NYSE:HPQ).
Let’s dive into everything investors in POLY stock need to know about that deal below!
- First off, note that HP is acquiring the video conferencing company for $3.3 billion, which includes its debit.
- This has the computer company planning to spend $40 per share on POLY stock.
- That payment will be made with cash and represents an almost 53% premium over the stock’s closing price on Friday.
- HP points out that it expects the deal to be accretive to its ” revenue growth, margins, and non-GAAP EPS at close.”
- The company is also expecting $500 million of revenue synergies by the time fiscal year 2025 rolls around.
- It’s also looking for Poly’s revenue growth to jump to 15% CAGR in the three years following the acquisition.
- HP and Plantronics are expecting the deal to close by the end of the year.
Dave Shull, president and CEO of Poly, said the following about the deal with HP.
“I am thrilled about the opportunity this represents for Poly, our employees, partners and customers. The combination gives us an opportunity to dramatically scale, reaching new markets and channels, supercharging our innovation with a like-minded partner.”
POLY is rising alongside heavy trading with today’s news. As of this writing, more than 15 million shares of the stock have changed hands. That’s a jump from its daily average trading volume of about 302,000 shares.
POLY stock is up 50.2% as of Monday morning.
There’s more stock market news for investors to dive into below!
We’ve got all the latest stock news traders need to know about today! For Monday, that includes Tesla (NASDAQ:TSLA) stock plans, Kaixin Auto (NASDAQ:KXIN) shares driving higher, and what has crypto stocks on the move. You can find all of this news at the following links!
More Stock Market News for Monday
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- Crypto Mining Stocks News: Why Are MARA, RIOT, HUT, BITF, NILE, BTBT Stocks Up Today?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
