HP set to buy Neoware for US$214 million

HP hopes deal will enhance its personal systems technologies

HP on Monday announced plans to acquire thin-client computing vendor Neoware for approximately US$214 million in a deal HP says will enhance its personal systems technologies.

Following an earlier announcement today that it would acquire Opsware for US$1.6 billion, HP revealed it had also entered into an agreement to acquire Neoware. The deal, expected to close by the end of October (HP's fourth fiscal quarter), will enable HP to accelerate the growth of its thin-client business by "boosting its Linux software, client virtualization and customization capabilities," the company said in a press release.

"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," said Kevin Frost, vice president of Business Desktops in the Personal Systems Group at HP, in a press release.

The merger of HP and Neoware technologies will combine the latter's Linux-based thin clients and software with HP's Microsoft Windows thin clients and virtual client environments, such as blade PCs, blade workstations and virtual desktops, according to HP. Already a leader in thin-client computing, the deal with Neoware will help HP maintain its position and help customers shift more easily to virtualized client computing.

"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 CEO of Neoware, in a press release. "We are proud to be joining HP, where together we will continue to promote the shift to virtualized client computing."

Following the close of the acquisition, HP plans to integrate Neoware into the Business Desktops Unit of HP's Personal Systems Group.

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