HP to Buy Linux Thin Client Desktop Company

HP said the acquisition is part of its strategy to expand in growth markets and further its leadership in personal computing.

Hewlett-Packard announced on July 23 that it would be buying Neoware, a provider of Linux, Windows CE and Windows XPe OS thin client computing and virtualization solutions. HP will be paying $16.25 per share, or an enterprise value (net of existing cash) of approximately $214 million on a fully diluted basis for the company.

In a statement, HP declared that this acquisition as part of HPs strategy to expand in growth markets and further its leadership in personal computing. HP made a particular point of stating that acquiring Neoware is intended to accelerate the growth of HPs thin client business by boosting its Linux software, client virtualization and customization capabilities, expanding its regional sales footprint and broadening its hardware portfolio.

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Neoware has long claimed that among the three largest thin client vendors, it is the only one that is "committed to the Linux operating system."

Neoware offers binary compatible Linux thin clients based on industry standard Linux. The company claims that it has made Linux so intuitive you dont have to know anything about Linux to set up or use NeoLinux. NeoLinux is a thin-client optimized Linux. It is built on the Linux 2.6 kernel. It includes built-in support for Citrix remote applications and the NoMachine NX client. NeoLinux also comes with Firefox, Java 2, Macromedia Flash Player and Adobe Acrobat Reader.

Its thin client Linux features a secure, read-only file system thats virtually virus proof because applications run on the server, not the desktop. This thin client Linux employs a hardened default security profile and a streamlined user security environment.

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