Thin Client Computing Attracts HP

HP announced that it has signed a definitive agreement to purchase the company Neoware, a provider of thin client solutions and virtualization computing at a price of approximately $214 million. This acquisition is part of a bigger company strategy of expanding in growth markets and cementing its leadership in personal computing. The merging with Neoware should lead to an acceleration of HP's own thin client business by boosting its Linux based software, client virtualization and customization capabilities.

"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."

Because thin clients need reduced maintenance costs, minimal application updates and they provide a higher level of security when compared to traditional desktop based computer systems, their market developed at an explosive pace. This transaction between HP and Neoware will combine the strength of a well known and established hardware manufacturer (HP is currently producing thin clients, blade servers, traditional servers, desktop and mobile PCs) with the innovative spirit of the Neoware's Linux-based thin client solutions. HP further plans to leverage the acquisition to remain an industry leader in reducing its environmental footprint through less noise, power and packaging versus desktop PCs.

"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 chief executive officer, Neoware Inc. "We are proud to be joining HP, where together we will continue to promote the shift to virtualized client computing." Following completion of the transaction, HP plans to integrate Neoware into the Business Desktop Unit of HP's Personal Systems Group.