Hewlett-Packard revealed that it is to acquire the cloud-computing software developer Eucalyptus Systems Inc as part of Chief Executive Officer Ms. Meg Whitmans strategy to boost the business of the company. The deal is expected to be finalized in the fourth quarter of the fiscal year.
Hewlett-Packard announced in May 2014 that it plans to invest more than $1 billion over two years in order to develop cloud-computing software and tools. In August this year the company revealed that it reached an agreement with Beijing UnionRead Information Technology Ltd. to build and operate community clouds in China.
The financial terms of the deal were not disclosed. According to a person familiar with the matter, the price of the acquisition is less than $100 million. The purchase highlights a return to mergers and acquisitions for Chief Executive Whitman, who is trying to attract more customers to Hewlett-Packard via the companys own cloud networks.
“We can help you build the cloud you want your way versus trying to get you to commit to our products,” Bill Hilf, senior vice president of Hewlett-Packard’s cloud product management organization, said in a telephone interview that was cited by Bloomberg.
Eucalyptus was founded in 2009 and provides open-source software for building private and hybrid clouds. The company has been working in collaboration with Amazon following a wide-ranging agreement reached in early 2012.
Now Eucalyptus CEO Mr. Marten Mickos is to join Hewlett-Packard at the position of senior vice president and general manager of the cloud business of the company. He will report directly to Ms. Whitman.
Mr. Martin Fink, who currently heads HPs cloud business, will retain his responsibilities as chief technology officer and director of H-P Labs.
Hewlett-Packard Co. fell by 0.73% on Thursday in New York to close at $36.76 per share, marking a one-year change of +65.07%. The company is valued at $68.60 billion. According to CNN Money, the 24 analysts offering 12-month price forecasts for Hewlett-Packard Co. have a median target of $40.00, with a high estimate of $45.00 and a low estimate of $32.00. The median estimate represents a +8.81% increase from the last price of $36.76.
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