The computer hardware company Hewlett Packard (HP) has officially announced the completion of their acquisition of Kingston Technology Company’s gaming division, HyperX, for $425 million.
This has been in the works for a few months since HP announced their plans to acquire HyperX way back in February of this year. They originally stated that the acquisition was part of their push to expand into the growing market for PC gaming and PC gaming peripherals. They had estimated that the PC hardware industry would be worth roughly $70 billion by 2024, and the PC peripheral industry would be worth $12.2 billion in the same time frame.
At the time the President and CEO of HP, Enrique Lores, said:
“HyperX is a leader in peripherals whose technology is trusted by gamers around the world and we’re thrilled to welcome their outstanding team to the HP family. We continue to advance our leadership in Personal Systems by modernizing compute experiences and expanding into valuable adjacencies.”
As part of the deal, HP will take over HyperX’s gaming peripherals portfolio, while their original parent company, Kingston, will retain the DRAM, flash, and SSD products for consumers.
HP, HyperX and esports
By acquiring HyperX, HP not only has a strong foothold in the PC gaming world, but they have also gained a huge range of connections in the esports industry. HyperX has strong connections with some of the top esports organisations from around the globe.
HyperX have been part of some key esports partnerships with the likes of Cloud9, Dignitas, and Team Liquid. OMEN from HP has already been making in roads into the esports scene but the acquisition of HyperX has accelerated that by a huge amount.
Since HyperX is already a sponsor of plenty of esports and gaming organizations, players, content creators, and esports events, I wouldn’t be surprised to see them expand their esports sponsorships in the near future. The increased funding and support from HP could see them become a dominant force in the world of esports sponsorships.
Comments from HP and HyperX
Alex Cho, president of Personal Systems at HP Inc. wrote about the finalisations of the purchase:
“We are delighted to officially welcome the incredible people of HyperX to HP. HyperX has built a loyal following among gamers and we look forward to further strengthening the HyperX brand. This acquisition further advances our ability to create the compute experiences of the future, expand into valuable adjacencies, and unlock new sources of growth.”
In February, John Tu, Co-founder and CEO, Kingston also spoke about the acquisition:
“HyperX products are designed to meet the most rigorous demands of all gamers – from casual to the most hardcore – giving them a winning edge and helping them stay on top of their game. Both of our companies thrive because we focus on our employees and share the same core values and culture. David Sun (Co-founder and COO) and I saw the possibilities for the HyperX business and its employees and we both realized that this change brings a brighter future for HyperX.”
The future for HyperX
The HyperX brand is in very safe hands with HP, they are the grandfather of computer companies who have survived for decades. They have played it safe in the past but with the acquisition of HyperX they could be looking to expand their horizons beyond enterprise laptops and printers.