HP to Acquire Neoware

PALO ALTO, Calif. -- HP (NYSE:HPQ - News) today announced that it has signed a definitive merger agreement to purchase Neoware Inc. (Nasdaq:NWRE - News), a provider of thin client computing and virtualization solutions, at a price of $16.25 per share, or an enterprise value (net of existing cash) 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 virtualization and customization capabilities, expanding its regional sales footprint and broadening its hardware portfolio.

"Our objective is to become the preferred brand of thin clients and software for virtualized client computing," said Kevin Frost, vice president, Business Desktops, Personal Systems Group, HP. "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."

Hewlett-Packard Co.