By Lisa Kerner
Charlotte, N.C., July 23 - Neoware Inc. agreed to be acquired by Hewlett-Packard Co. for $16.25 per share, or an enterprise value of approximately $214 million, in a deal designed to accelerate the growth of Hewlett-Packard's thin client business.
The transaction will combine Neoware's Linux-based thin client solutions and software with Hewlett-Packard'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.
Following the transaction's close, Neoware will be integrated into the business desktop unit of Hewlett-Packard's personal systems group. Hewlett-Packard expects the deal to close in its fourth fiscal quarter of 2007, which ends Oct. 31.
A $10 million termination fee is included in the agreement as stated in a form 8-K filing with the Securities and Exchange Commission.
"Our objective is to become the preferred brand of thin clients and software for virtualized client computing," Kevin Frost, vice president, business desktops, personal systems group, Hewlett-Packard, said in a company news release. "Acquiring Neoware confirms our commitment to thin client computing and client virtualization solutions."
Hewlett-Packard also announced a definitive agreement to acquire Opsware Inc. for $1.6 billion including debt.
Neoware, located in King of Prussia, Pa., is a provider of thin client computing solutions.
Hewlett-Packard is a Palo Alto, Calif., computer, printing and imaging technology company.
| Acquirer: | Hewlett-Packard Co.
|
| Target: | Neoware, Inc.
|
| Transaction total: | $214 million
|
| Price per share: | $16.25
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| Announcement date: | July 23
|
| Termination fee: | $10 million
|
| Expected closing: | By Oct. 31
|
| Stock price for target: | Nasdaq: NWRE: $15.24 on July 20
|
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