HP 2007 Annual Report Download - page 114

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 6: Acquisitions (Continued)
$1.3 billion of goodwill and $249 million of amortizable intangible assets. HP is amortizing the purchased intangibles on a
straight-line basis over their estimated lives ranging from five to six years. HP did not record any IPR&D in connection with
the Opsware acquisition.
Other Acquisitions in fiscal 2007
HP also completed eight other acquisitions during fiscal 2007. Total consideration for these acquisitions was
approximately $1.0 billion, which included direct transaction costs, the estimated fair value of earned unvested stock options
and certain liabilities recorded in connection with these acquisitions. The largest of these transactions was the acquisition of
Neoware, Inc., which HP expects to further its leadership in personal computing by accelerating HP’ s thin client portfolio.
HP recorded approximately $700 million of goodwill and $182 million of purchased intangibles in connection with these
other acquisitions. HP also recorded approximately $9 million of IPR&D related to these acquisitions in fiscal 2007. Projects
that qualify for treatment as IPR&D have not yet reached technological feasibility and have no alternative use.
HP has included the results of operations of these transactions prospectively from the respective date of the transaction.
Pending and Subsequent Acquisitions
In November 2007, HP agreed to acquire EYP Mission Critical Facilities Inc., a consulting company specializing in
strategic technology planning, design and operations support for large-scale data centers. The transaction is subject to certain
closing conditions and is expected to be completed during HP’ s first quarter of fiscal 2008. Upon completion, the business is
expected to be fully integrated into HP Services.
In November 2007, HP completed the acquisition of MacDermid ColorSpan Inc., a privately held manufacturer of wide-
format digital inkjet printers. The business is being integrated into HP’ s Imaging and Printing Group.
In November 2007, HP completed the acquisition of Atos Origin Middle East Group, one of the Middle East’ s leading
systems integrators. The business is being integrated into HP Services.
In December 2007, HP agreed to acquire NUR Macroprinters Ltd., a maker of industrial wide-format digital inkjet
printers. This transaction is subject to certain closing conditions and is expected to be completed during HP’ s second quarter
of fiscal 2008. Upon completion, the business is expected to be fully integrated into HP’ s Imaging and Printing Group.
Acquisitions in fiscal 2006
Peregrine
On December 19, 2005, HP acquired the outstanding shares of Peregrine Systems, Inc. (“Peregrine”) in a cash merger for
$26.08 per share. The purchase price was approximately $538 million, consisting of $442 million of cash paid, which
includes direct transaction costs, as well as the assumption of certain liabilities in connection with the transaction. The
acquisition of Peregrine added key asset and service management components to the HP OpenView portfolio, a distributed
management software suite for business operations and IT. In connection with this acquisition, HP
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