Kingston Technology has announced the sale of its HyperX gaming division to HP in a deal worth around $425 million. HyperX is one of the most recognizable names in gaming hardware, and HP's acquisition signals its intent for growth into the ever-expanding and lucrative gaming market.
HP Acquires HyperX
The $425 million deal will see HP purchase the HyperX brand from Kingston Technology, who has built the brand into one of the most well-known in the gaming hardware space. Currently, HyperX produces SSDs, headphones, mice, microphones, and more, many of which have previously won awards.
HP's official press release, HP President and CEO Enrique Lores, elaborated on the reasons behind the HyperX purchase and what it means for the company moving forwards.
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.
HP already produces some gaming hardware under its Omen brand. But despite receiving generally favorable reviews for its gaming range, Omen has never hit the same heights as its direct competitors—including HyperX.
Under the terms of the agreement, Kingston Technology will retain its DRAM, flash, and SSD products for gamers and enthusiasts, while HP will take-on HyperX's existing ranges of headphones, keyboards, mice, and so on.
Kingston Technologies Co-founder and CEO John Tu said, "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."
Big Moves for HP Into Gaming Hardware
HP's acquisition of HyperX is sure to capture the imagination of some users while striking fear into others. HyperX is an award-winning brand with a solid reputation for delivering long-lasting, high-quality computer hardware, not just for gaming, and its Cloud headset line remains one of the most popular options worldwide.
Of course, HP hasn't bought such a brand only to gut it, but it is buying it to further its ambitions to gain a greater foothold in the gaming hardware market. You'd imagine that the HyperX brand will continue alongside HP's Omen brand rather than one replacing the other, such is the recognition of the former.
The deal is expected to wrap up before the end of Q2 2021, and it won't be long before gamers see where HP is taking the HyperX brand.