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Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →Hewlett-Packard announced on July 23, 2007, that it would buy Opsware in a cash tender offer of $14.25 per share. HP described the transaction as approximately $1.6 billion in enterprise value, fully diluted and net of existing cash and debt. The acquisition closed on September 21, 2007, when Opsware became an HP subsidiary.
How much did HP pay for Opsware?
The deal was announced at $14.25 per Opsware share. HP’s July 23, 2007 announcement put the transaction’s enterprise value at approximately $1.6 billion on a fully diluted basis, net of Opsware’s existing cash and debt.
HP later reported an aggregate purchase price of approximately $1.7 billion in its 2007 annual report. That accounting figure included cash paid for stock, vested in-the-money stock options and direct transaction costs. The two amounts describe different measures at different stages; they are not competing quotes for an identical calculation.
| Figure | What it describes | Timing and attribution |
|---|---|---|
| $14.25 per share | Cash tender-offer price for Opsware shares | HP’s July 23, 2007 announcement |
| Approximately $1.6 billion | Announced enterprise value, fully diluted and net of existing cash and debt | HP’s July 23, 2007 announcement |
| Approximately $1.7 billion | Aggregate purchase price, including cash paid for stock, vested in-the-money options and direct transaction costs | HP’s 2007 annual report, reporting the completed acquisition |
When did HP acquire Opsware?
HP announced the agreement on July 23, 2007; the merger agreement had been entered into on July 20. The planned transaction used a tender offer followed by a merger, subject to customary conditions including regulatory approvals. HP’s 2007 annual report says it acquired the remaining shares on September 21, 2007, and Opsware became wholly owned by HP.
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Why did HP buy Opsware?
HP said the acquisition would extend its Business Technology Optimization (BTO) software portfolio by adding Opsware’s data-center automation to HP’s enterprise IT management capabilities. HP described the intended coverage as spanning initial provisioning through ongoing change and compliance across servers, networks and storage, with integrated process automation. Those statements represent HP’s rationale and expected benefits, not independent confirmation of market position or customer outcomes.
HP also announced that Opsware CEO Benjamin Horowitz was expected to lead the BTO organization within HP Software, reporting to Thomas E. Hogan. That was the planned leadership arrangement at the time of the announcement.
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In the announcement, HP chairman and CEO Mark Hurd expressed the company’s view: “With this strategic acquisition, I believe customers will see HP as the clear vendor of choice to help them transform how they manage and automate IT to drive better business outcomes.”
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What was Opsware before the acquisition?
Opsware began as Loudcloud in 1999, according to a contemporaneous employee letter filed with the SEC by CEO Benjamin Horowitz. Horowitz recounted that the company sold its managed-services business to EDS in 2002 and then became a software company called Opsware.
In that letter, Horowitz said Opsware had more than $100 million in annual revenue and over 550 employees by the time of the 2007 announcement. These were company-reported figures from Horowitz, rather than independently verified measurements.
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