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.
About HP
HP focuses on simplifying technology experiences for all of its customers - from
individual consumers to the largest businesses. With a portfolio that spans printing,
personal computing, software, services and IT infrastructure, HP is among the world's
largest IT companies, with revenue totaling $100.5 billion for the four fiscal quarters
ended July 31, 2007.
More information about HP (NYSE: HPQ) is available at
www.hp.com.
