Hewlett-Packard has plans to buy Neoware

Word has it that Hewlett-Packard will buy a thin client computing company named Neoware. If the deal goes through-HP will put Neoware in its business desktop unit. The goal here is to facilitate HP's Linux software, client virtualization and customization abilities.

HP's wants to put Neoware's products into their thin client computing business. This strategic acquisition of Neoware will extend HP's reach - increasing the size of its hardware portfolio. The deal is supposed to close by the end of this year for $16.25 per outstanding share. This equates to an estimated equity value of $334 million dollars.