Computer storage and memory products maker Kingston Technology Inc. is selling its gaming unit to the Palo Alto-based computer and printer giant HP.
HyperX offerings include headsets, keyboards, mice, mouse pads, USB microphones, console accessories and eyewear.
“HyperX corporate offices will continue to be based in Fountain Valley, on the campus of Kingston,” Daniel Kelley, vice president of marketing at HyperX, told the Business Journal on March 1.
“HyperX offices globally will also remain at their current locations.”
He added: “It is important to both HP and HyperX to maintain the gaming culture and trust created over the years in the gaming community, and to retain the people that have created it and helped build the brand.”
HP is paying $425 million, subject to customary working capital and other adjustments, to acquire Kingston's HyperX.
So far, there’s no word on whether Kingston founders John Tu and David Sun will share proceeds with employees as they did when they sold 80% of the parent company to SoftBank Corp. in 1996. At that time, Tu and Sun distributed $100 million among the workers. They bought back the share three years later.
Kingston is the largest privately owned company in Orange County, with revenue expected to top $13 billion this year. It hasn’t disclosed what percentage of that figure derives from HyperX.
Gaming Attractive
“The acquisition supports HP’s strategy to drive growth in its personal systems business, where gaming and peripherals are attractive segments,” Kingston said in announcing the sale to HP in late February.
Kingston will retain the DRAM memory, flash, and SSD electronic storage products for gamers and enthusiasts since they are part of Kington’s core offerings.
The transaction is expected to close by June 30, pending regulatory review and other customary closing conditions.
Kelley says he will remain as the vice president of marketing for HyperX.
“Kingston appreciated how HP understood the value of the HyperX team that brought the brand to this level, and their commitment to bring them into their family to continue providing direction and growth to the brand,” Kelley told the Business Journal.
He emphasized HyperX is not moving out of Fountain Valley.
HP Views
HP itself provided some insights into the HyperX future.
“HP intends to keep all HyperX locations in the same general area to minimize disruption to employees and the business. HyperX will maintain existing locations across the U.S., UK, Taiwan, and China,” an HP spokesperson told the Business Journal.
There were no workforce reductions associated with the purchase of HyperX, HP told the Business Journal.
“This deal creates attractive new opportunities for us to expand our gaming ecosystem as we continue to advance our leadership position in the broader Personal Systems market. We look forward to welcoming HyperX’s incredibly talented team to the HP family,” the spokesperson said.
HP said it will retain HyperX name.
PC gaming continues to be one of the most popular forms of video gaming, with the PC hardware industry anticipated to be worth $70 billion by 2023, according to HP.
