Hewlett Packard Company (HPQ) recently disclosed at a press release that it will acquire database technology maker Vertica, but did not divulge pecuniary details. The company will try to wrap up this transaction during the second quarter of fiscal 2011.
The technology major is of the opinion that this deal will add sophisticated, real-time business analytics technology to HP’s portfolio for large and complex sets of data in physical, virtual and cloud environments. This in turn, will help the company gain more customers in the data analysis market, thereby enhancing its business volume.
It also bought 3PAR Inc. (PAR) edging out its rival Dell Inc. (DELL) at the best price of $33.0 per share. The company also bought another security software provider ArcSight for about $1.5 billion.
Hewlett Packard purchased Electronic Data Systems (EDS) in 2008 for approximately $13.9 billion. The company’s Technology Solutions Group segment shifted its outsourcing services operations and a part of its consulting and integration activities to Electronic Data. Services have contributed the largest chunk of HP’s revenue following this acquisition.
In November 2009, the company acquired networking major, 3Com. The company is through with this $2.7 billion acquisition, tightening its grip over the networking market.
As per the recent data published by the market research firm Gartner, Hewlett-Packard holds the top slot in the global PC market, with a market share of 18.8%, followed by Acer being the second-highest with 12.7% share, and Dell (DELL) with 11.6% share. So, there is no doubt the company is ruling the computing world and is expected to retain the position in the coming years.
We continue to believe in the growth story of the company. However, integration of the newly acquired companies could impose some challenges to the company; coupled with the some rationalization in the IT spending recovery growth.
We have a Neutral rating on Hewlett-Packard, with a short-term Zacks #3 Rank (Hold rating).
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