HP Inc. is expanding its footprint in the multibillion-dollar peripherals and gaming markets, with its first acquisition of a peripherals company.

The PC-and-printer pioneer on Wednesday said it intends to acquire HyperX, the gaming division of Kingston Technologies Co., for $425 million. HyperX’s
product portfolio includes such gaming peripherals as headsets, keyboards,
mice, mouse pads, USB microphones and console accessories.

“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” as PCs increasingly become the entertainment platform for the home, he added.

The coronavirus pandemic, in particular, has accelerated the trend. The worldwide market for peripherals is expected to grow to $12.2 billion by 2024, according to HP, and gaming accounts for 37% of the U.S. peripherals market, and 53% in China.

The company is scheduled to report fiscal first-quarter results on Thursday. Analysts polled by FactSet expect HP to earn 66 cents a share on sales of $15 billion.

HP’s stock

is up 17% over the past year. The broader S&P 500 index

is up 24% over the past 12 months.

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