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HP to Acquire HyperX for $425 Million

HyperX Cloud II Wireless
(Image credit: Tom's Hardware)

HP today announced that it’s reached an agreement with Kingston Technologies to acquire HyperX in a deal worth approximately $425 million. The company said that, pending regulatory approval, it expects the deal to close sometime in 2Q21.

HP made it clear that it’s only acquiring HyperX for its portfolio of gaming peripherals. HyperX makes some of the best gaming headsets and best gaming keyboards, while also competing against the best gaming microphones and even offering some contenders for best gaming mouse. HP said Kingston will “retain the DRAM, flash, and SSD products for gamers and enthusiasts“ with the HyperX brand after the acquisition.

It seems like HP plans for HyperX and Omen to co-exist. The company said in the announcement that “adding HyperX to HP’s broader gaming ecosystem will deliver innovative new experiences across everything gamers see, hear, and touch.”

It’s not clear what HP plans to do with HyperX’s console gaming products. The brand offers a variety of headsets and charging accessories for PlayStation, Xbox, and Nintendo consoles as well as a microSD card marketed to Switch owners.

HyperX won’t be HP’s only gaming-focused brand. The company already offers a line of Omen products that includes laptops, pre-built desktops, monitors, keyboards, mice, headsets, and a few miscellanies bundled as “gear” on the brand website.

Kingston introduced the HyperX brand in 2002 with a line of high-performance (for the time) DDR1 memory. The brand has since expanded to a wide array of peripherals related to PC and console gaming as well as the core memory products.

HP said in the announcement that it expects the HyperX acquisition to “be accretive on a non-GAAP basis to HP in the first full year following closing.” Then the only question will be if the HyperX brand will be able to last longer than VoodooPC did.

  • bigdragon
    Ouch. I liked HyperX, and I like Kingston products. I have been less than impressed with HP products. This acquisition tells me HyperX is going to transition from decent products to low-quality, cheapo, overly designed gamer junk with flashy colors. Disappointing.
    Reply
  • tharkis842
    Noo..HyperX, especially their headsets are pretty decent overall. HP on the other hand, is pretty lack luster. This isn't good. Gonna have to buy some extra's to have on hand just in case.
    Reply
  • MarsISwaiting
    pffft ... after few years we will be left off with two brands only in the PC market.

    I dont understand why people sell their hard work that easy while it is successful . I would never sell my business if it is successful even if offered 5 times what it is worth.
    Reply
  • mac_angel
    well, HP killed Omen. I guess HyperX is next.
    Reply
  • watzupken
    Actually the way I see it, I think it is good for Kingston to step away from ths oversaturated gaming periperhals market. Every known PC or PC component maker wants a slice of this market, and frankly, there are way too many. While I don't deny HyperX produces some decent products, I really wonder they sell that well as compared to more establish brands like Corsair, Logitech, etc.
    Reply
  • Gam3r01
    watzupken said:
    Actually the way I see it, I think it is good for Kingston to step away from ths oversaturated gaming periperhals market. Every known PC or PC component maker wants a slice of this market, and frankly, there are way too many. While I don't deny HyperX produces some decent products, I really wonder they sell that well as compared to more establish brands like Corsair, Logitech, etc.
    Some of their stuff sold quite well, but I would also like to see how they did in all segments of the peripheral market.
    Their Cloud series headsets were very popular for a long while, sorta disrupted the logitech G35 and 930 reign that was on for a while.
    The quadcast was also a surprising product out of kingston, right up there with the market leaders.
    Reply
  • amk-aka-Phantom
    watzupken said:
    While I don't deny HyperX produces some decent products, I really wonder they sell that well as compared to more establish brands like Corsair, Logitech, etc.
    HyperX stuff sells extremely well. Their headsets are very good and very popular, and they just recently released a new microphone, Solocast, that is an absolutely unbeatable deal at USD 60 (made Razer Seiren Mini obsolete overnight) which is getting wiped out from shelves everywhere it appears.
    Reply
  • vern72
    There goes another good brand down the drain. I love my Cloud headphones and all the goodies that it came with. I'm not sure who I'm going to go with next if they should every break.
    Reply
  • Gam3r01
    vern72 said:
    There goes another good brand down the drain. I love my Cloud headphones and all the goodies that it came with. I'm not sure who I'm going to go with next if they should every break.
    If you dont need the mic it would be a good sign to upgrade to real headphones over a headset.
    I loved my Cloud IIs, used them near daily since they launched what, 6 years ago? Finally gave out so I upgraded.
    Reply