Benzinga | Feb 24, 2021 01:07PM EST

HP to Acquire Kingston Technology's Gaming Division HyperX For $425M

* HP Inc (NYSE: HPQ) inked an agreement to acquire Kingston Technology Company's gaming division HyperX for $425 million. The acquisition is estimated to drive HP's Personal Systems business.

* Kingston will retain the DRAM, flash, and SSD products for gamers and enthusiasts.

* The acquisition is expected to be accretive in the first full year following the closing in calendar Q2 2021.

* HyperX's product portfolio encompasses a range of gaming peripherals, including headsets, keyboards, mice, mousepads, USB microphones, and console accessories.

* "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," said HP CEO Enrique Lores.

* The PC hardware industry is estimated to be worth $70 billion by 2023. The global peripherals market is projected to reach $12.2 billion by 2024.

* HP continues to push advanced gaming with powerful devices like the OMEN 15 gaming laptop and the HP Pavilion Gaming 16 laptop. It is driving software innovation with OMEN Gaming Hub for gamers. The addition of HyperX to HP's broader gaming ecosystem has the potential to deliver innovative new experiences across gaming.

* Price action: HPQ shares were higher by 1.92% at $27.91 on the last check Wednesday.