HP acquires thin client specialist Neoware

Deal aimed at expanding HP's footing in the desktop virtualisation market

HP has agreed to acquire thin client specialist Neoware, in a deal worth $214m.

The deal is designed to boost HP’s leadership in the personal computing market, and expand its footing in the emerging desktop virtualisation market.

"Thin clients are an important component in today's overall computing strategy and play a critical role in HP's virtualisation strategy,” said Kevin Frost, a vice-president in HP’s Personal Systems Group. "Our objective is to become the preferred brand of thin clients and software for virtualised client computing.”

The acquisition will allow HP to add Neoware’s line of Linux-based thin clients to its own range based on Microsoft Windows XP Embedded and Windows CE. Neoware also offers Windows-based versions of its terminals.

HP is also playing the green IT card, announcing that the deal will reduce the firm’s environmental footprint “through reduced noise, power and packaging versus desktop PCs”.

Neoware will become part of HP’s Personal Systems Group once the deal goes through. HP expects to close the transaction in the fourth quarter, subject to the normal regulatory approvals.

On the same day that HP announced its Neoware intentions, the firm also revealed plans to acquire datacentre automation vendor Opsware in a much larger deal worth $1.6bn.

On a conference call about the Opsware acquisition, HP Software's senior vice-president, Thomas Hogan, said that the timing of the two announcements was a coincidence. “But I do believe there could be some synergy with [Neoware’s] client management capabilities, adding to HP's market leading solution in desktop configuration and management,” he added.