HP to Acquire Neoware for $214 Million, Opsware for $1.6 Billion
HP announced that it has signed agreements to acquire Neoware Inc., a provider of thin client computing and virtualization solutions, and Opsware Inc., a data center automation software company.
HP will buy Neoware for $16.25 a share, or an enterprise value (net of existing cash) of approximately $214 million on a fully diluted basis. The company will acquire Opsware through a cash tender offer for $14.25 a share, or an enterprise value (net of existing cash and debt) of around $1.6 billion on a fully diluted basis.
The Neoware acquisition is part of HP’s strategy to expand in growth markets and further its leadership in personal computing. It will accelerate the growth of HP’s thin client business by boosting its Linux software, client virtualization and customization capabilities, expanding its regional sales footprint and broadening its hardware portfolio.
“Our objective is to become the preferred brand of thin clients and software for virtualized client computing,” said Kevin Frost, vice president, Business Desktops, Personal Systems Group, HP. “Thin clients are an important component in today’s overall computing strategy and play a critical role in HP’s virtualization strategy. Acquiring Neoware confirms our commitment to thin client computing and client virtualization solutions.”
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