Sunday, August 05, 2007

Hit #177 (Opsware)

Opsware (OPSW) is being taken out - finally! HP is putting down $1.6 billion in a cash deal, valuing shares at $14.25 a piece. That offer makes for a 141.5% gain over my average cost of $5.9.

I have repeatedly mentioned Opsware as a target in the past, including in a post titled What should HP do ?. There I said - HP should buy one or all of these players - Veritas (VRTS), Opsware (OPSW), Altiris (ATRS)! More than 2 and a half years later, HP decided to act!

While the offer is fair, I am stunned by the lack of competing bids. Companies from EMC (see EMC trips) to Symantec and BMC to Macrovision (see A tech heavyweight in the making) should be going after Opsware!

Read more about the deal directly from Marc Andreessen - HP buys my company ....

With this deal, there aren't any more targets left in this sector. Companies like BMC and Macrovision can themselves be targets, but for shareholders they are better off as standalone companies given the growth potential in the sector.

Previous hit - DJO (#176)


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