Source AP ©

Hewlett-Packard to buy data center automation software company

Computer and printer company Hewlett-Packard Co. said Monday it will buy data center automation software company Opsware Inc. for about $1.6 billion (EUR 1.16 billion).

HP is offering $14.25 (EUR 10.31) per share in cash in a tender offer for Opsware, a 38.6 percent premium over Opsware's closing price of $10.28 (EUR 7.44) on Friday.

Opsware will fold into HP's software business after the deal closes, HP said, helping to increase the size of its business technology optimization software portfolio.

The company said it anticipates naming Opsware Chief Executive Ben Horowitz as head of its business technology optimization group after the deal is completed.

HP said it expects the purchase to be completed before the end of its fourth fiscal quarter.

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