HP Closes Neoware Acquisition
PALO ALTO, Calif., Oct. 1, 2007 - HP today announced that it has completed its acquisition of Neoware Inc., a provider of thin client computing and virtualization solutions, at a fully diluted, enterprise value (net of cash) basis of approximately $214 million.
With the acquisition of King of Prussia, Pa.-based Neoware, HP plans to use the best of both companies' technologies to create thin clients that are easier to deploy, more secure and more affordable. The deal will also extend HP's regional sales reach.
Thin clients provide a higher level of security, can reduce maintenance costs, and consume less electricity compared to other desk-based computing products because they contain no local data, no moving parts, utilize low-power components and connect over a network to remote blade PCs and servers where data processing and storage occurs.
"The integration of Neoware will enable us to offer the industry's broadest portfolio of remote client solutions that deliver the most secure, reliable and easily managed computing infrastructure available today," said Kevin Frost, vice president, Business Desktops, Personal Systems Group, HP. "Our top priority is to ensure that Neoware and HP deliver uncompromised product and business continuity to our combined customers."
Prior to the acquisition, HP was the worldwide leader in each of the Microsoft Windows® XPe, Windows CE and Linux thin client categories. Acquiring Neoware is expected to boost HP's thin-client business in the areas of Linux software, client virtualization and customization capabilities.
Under the terms of the merger agreement, Neoware stockholders will receive $16.25 for each share of Neoware stock that they held at the closing of the acquisition and the company will be integrated into the Business Desktop unit of HP's Personal Systems Group.