By Lisa Kerner
Charlotte, N.C., July 23 - Hewlett-Packard Co. signed a definitive agreement to acquire Opsware Inc. in a $14.25-per-share cash tender offer. The total value of the transaction is some $1.6 billion including debt.
The tender offer is slated to close before the end of Hewlett-Packard 's fourth fiscal quarter of 2007, or Oct. 31. Following the tender offer, Opsware will merge with a Hewlett-Packard subsidiary and become part of Hewlett-Packard's software business.
A $50 million cash termination fee is included in the deal, according to a form 8-K filing with the Securities and Exchange Commission.
Hewlett-Packard said the acquisition will enhance its business technology optimization software. Opsware is the latest in a series of strategic software acquisitions, including Mercury Interactive and Peregrine Systems, a company news release stated.
Opsware chief executive officer Ben Horowitz is expected to lead the business technology optimization organization and report to Thomas E. Hogan, senior vice president of Hewlett-Packard's software business.
"Following last year's acquisition of Mercury Interactive, the addition of Opsware is expected to enhance HP's standing as one of the world's leading software companies and drive profitable growth for HP," Ann Livermore, executive vice president, technology solutions group, Hewlett-Packard, said in the release.
Hewlett-Packard is an information technology company based in Palo Alto, Calif.
Opsware, based in Sunnyvale, Calif., is a data center automation company.
| Acquirer: | Hewlett-Packard Co.
|
| Target: | Opsware, Inc.
|
| Transaction total: | $1.6 billion
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| Price per share: | $14.25
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| Announcement date: | July 23
|
| Termination fee: | $50 million
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| Expected closing: | By Oct. 31
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| Stock price for target: | Nasdaq: OPSW: $10.28 on July 20
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