HP has announced that it has signed a definitive agreement to purchase Opsware Inc. (Nasdaq: OPSW), a market-leading data centre automation software company, through a cash tender offer for $14.25 per share, or an enterprise value (net of existing cash and debt) of approximately $1.6 billion on a fully diluted basis. Upon closing, the acquisition will enhance HP’s portfolio of business technology optimisation (BTO) software.

Combining Opsware’s solutions with HP’s enterprise IT management software will deliver a comprehensive and fully integrated solution for IT automation.

Opsware is the latest in a series of strategic software acquisitions, including Mercury Interactive and Peregrine Systems, which expand HP’s leadership in BTO. “The acquisition of Opsware is intended to enable HP Software to help our customers resolve one of their critical pain points: controlling the increasing complexity and cost of managing the data centre,” said Thomas E. Hogan, senior vice president, Software, HP. “We expect Opsware’s outstanding team will help us drive leadership across our BTO offerings.”

Opsware chief executive officer Ben Horowitz said: “The addition of Opsware to the HP Software portfolio will make HP the obvious choice for powering the next generation of data centres to come.” Following the close of the transaction, Opsware will become part of the HP Software business. At that time, HP also expects to appoint Ben Horowitz to lead the Business Technology Optimisation organisation reporting to Thomas E. Hogan, senior vice president, HP Software.

Opsware is a leading data centre automation company, that unlocks the promise of technology by accelerating IT to zero latency. The company’s software, the Opsware System, automates the entire data centre, from provisioning to patching, configuration to compliance and discovery to deployment, turning data centre operations into a competitive advantage for business.

More information about Opsware (Nasdaq: OPSW) is available at www.opsware.com