Hewlett-Packard Co. buys small-cap Neoware, Inc.
Neoware, Inc. (Nasdaq: NWRE), a maker of thin client software, reported Hewlett-Packard Co. (NYSE: HPQ) is purchasing the company for $16.25 per share.
In a statement, Hewlett-Packard said the acquisition is intented to speed business growth of its Linux software and client virtualization.
“Our objective is to become the preferred brand of thin clients and software for virtualized client computing,” Kevin Frost, HP's VP for business desktops and personal systems group, said in a statement. “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.”
HP expects to close the merger during the last three months of 2007.
In pre-market trading, Neoware shares were up $0.62, or 4.07%, at $15.24.
