Virtualization Technology News and Information
HP Strengthens Thin Client Computing Offering with Acquisition of Neoware Inc.

HP today announced that it has signed a definitive merger agreement to purchase Neoware Inc. (Nasdaq: NWRE), a provider of thin client computing and virtualization solutions, at a price of $16.25 per share, or an enterprise value (net of existing cash) of approximately $214 million on a fully diluted basis.

The acquisition is part of HP's strategy to expand in growth markets and further its leadership in personal computing. Acquiring Neoware is intended to 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."

Thin clients provide reduced maintenance costs, minimal application updates and a higher level of security compared to other desk-based computing products. The solid-state devices connect over a network to a server where all processing and storage takes place.

The transaction will combine the respective strengths of each company: Neoware's Linux-based thin client solutions and software with HP's thin clients based on Microsoft Windows® XPe and Windows CE and its virtualized client solutions, such as blade PCs, blade workstations, virtual desktop infrastructure and server-based computing. HP plans to leverage the acquisition to remain an industry leader in reducing its environmental footprint through reduced noise, power and packaging versus desktop PCs.

"Acquiring our company will further strengthen HP's PC business as it extends its portfolio of remote client solutions and delivers secure, low-cost access to centralized personal computing," said Klaus Besier, president and chief executive officer, Neoware Inc. "We are proud to be joining HP, where together we will continue to promote the shift to virtualized client computing."

Following completion of the transaction, HP plans to integrate Neoware into the Business Desktop Unit of HP's Personal Systems Group.

Under the terms of the merger agreement, Neoware stockholders will receive $16.25 for each share of Neoware stock that they hold at the closing of the merger. The acquisition is subject to a number of customary closing conditions, including regulatory approvals and the approval of Neoware's stockholders. HP expects the closing to occur in the fourth quarter of calendar year 2007.

Published Monday, July 23, 2007 11:30 AM by David Marshall
Filed under:
There are no comments for this post.
To post a comment, you must be a registered user. Registration is free and easy! Sign up now!
<July 2007>