Thin is the way ahead

HP has announced that it has signed a merger agreement to purchase Neoware, a provider of thin client computing and virtualisation solutions, at a price of US$16.25 per share, or an enterprise value of approximately $214 million on a fully diluted basis.

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By  Sathya Ashok Published  August 26, 2007

HP has announced that it has signed a merger agreement to purchase Neoware, a provider of thin client computing and virtualisation solutions, at a price of US$16.25 per share, or an enterprise value 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 virtualisation and customisation capabilities expand its regional sales and broaden its hardware portfolio.

"Our objective is to become the preferred brand of thin clients and software for virtualised client computing," said Anil Kumar, consumer and commercial category manager for the personal systems group at HP. "Thin clients are an important component in today's overall computing strategy and play a critical role in HP's virtualisation strategy. Acquiring Neoware confirms our commitment to thin client computing and client virtualisation solutions."

According to HP, 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 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 virtualised client solutions, such as blade PCs, blade workstations, virtual desktop infrastructure and server-based computing.

Following completion of the transaction, HP plans to integrate Neoware into the business desktop unit of HP's personal systems group.

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