HP is putting up big money to invest in video games.
The tech company known for its PCs and printers announced Wednesday that it intends to acquire HyperX for $425 million, subject to working capital and other adjustments.
HyperX, the gaming division of Kingston Technologies, makes headsets, keyboards, USB microphones, and other accessories. Kingston will keep the DRAM, flash and SSD products.
“HyperX products are designed to meet the most rigorous demands of all gamers — from casual to the most hardcore,” said John Tu, co-founder and CEO of Kingston.
Prior to the HyperX acquisition, HP’s main contribution to the space came from its OMEN and Pavilion gaming laptops.
“Gaming is a significant growth area in the PC business,” Alex Cho, president of HP’s personal systems division told MarketWatch. “It’s not just cyclical but a secular change.”
The PC gaming industry is expected to grow to $39.5 billion by 2022, up from $36.9 billion last year.
HP reports its first-quarter earnings on Thursday. The HyperX deal is expected to close in the second quarter.