It was exactly ten years ago, back in 2012.
I joined Plantronics as their VP of Consumer Products.
A decade later, the headset pioneer is being acquired.
A few days ago indeed, Hewlett Packard announced it had reached an agreement to acquire Poly, previously known as Plantronics.
It will take a few more months for the transaction to finalize, but let me share some of the triggers that led to this situation and a few takeaways.
In hindsight, that path to acquisition had become a very-likely scenario. It was more a matter of “how” and “when” than “if.”
Ten years ago, Plantronics, the “headset” company, had enjoyed a decent success story through its first fifty years, getting closer to $1B in revenue.
Yet, there were already signs of slowing growth, deteriorating profitability, and the dangers of being in the “accessory” single category trap.
What should leaders do in such a situation?
Find ways to accelerate growth and diversify!
And that’s what we did. Organically first, but it wasn’t enough.
So, senior executives went bolder with the acquisition of Polycom, a company larger than Plantronics, to form a new company: Poly.
The acquisition-merger resulted in growing pains, integration challenges, and a sizable debt.
Then, the pandemic hit, and things got complicated.
Work from home exploded, hybrid work became a reality for many, and demand for Poly’s communication and collaboration products kept increasing.
But, the supply chain was under severe tension. The company was still struggling in its transition to a larger enterprise structure. And competitors did a better job of capturing share in key segments.
A new CEO came on board. He had a history of mergers and acquisitions. That’s what he did, and it just took 18 months for a deal with HP to materialize. Some would call it a bargain for HP, given the much lower company valuation compared to its highest levels in 2018.
The markets Plantronics/Poly served were predictors that the company was up for becoming much more than a headset company.
It had a role to play in a larger ecosystem of communications and collaboration.
The Company’s leadership built a defensible vision, but its inability to effectively execute on that same vision led to value loss and this acquisition by HP.
Being acquired is always bittersweet.
On the one hand, it demonstrates that the business has value and potential in the eyes of the acquirer. You have built equity one way or another.
On the other hand, integrating a company forty times your size means you’ll have to fit in. The focus will be on synergies, and you’ll be diluted eventually.
Today, I’m thinking about my ex-colleagues who are still with Poly. The months ahead are filled with uncertainty. Roles will evolve, new teams will form, and jobs will be lost.
During these times, more than ever, leaders play a crucial role in helping everyone embrace the unknown and shape a better future.
Success starts with a strong vision. Flawless execution enables it. Then, it materializes with a “little luck.”