HP says that Teradici’s brand and organization will remain after closing, with Teradici CEO David Smith running that business for HP, and Teradici’s many strategic relationships remaining in place.
If you want to buy a successful high technology company, and see it acquired, establish it in Vancouver. Teradici was the latest in a long line of successful Vancouver-based companies to be acquired on Tuesday, with the announcement that HP Inc. has signed a definitive agreement to acquire Teradici. The purchase price was not announced.
Teradici started out as a hardware company, as the inventor and provider of the PCoIP [PC over IP] protocol. That is still an important part of their business. However, as the market evolved, they moved to virtualization, and then to multi-cloud solutions, where they broker across multi-cloud environments.
What HP is specifically interested in is Teradici CAS [Cloud Access Software], remote computing software which leverages their PCoIP protocol to provide a strong remote desktop experience with color-accurate and distortion-free graphics, even for high frame rate 4K/UHD graphics workloads. CAS won Teradici an Engineering Emmy in 2020.
“Teradici’s cutting-edge technology has long been at the forefront of secure, high-performance virtual computing,” said Alex Cho, president, Personal Systems, HP Inc. “Their world-class talent, industry-leading IP, and strong integrations with all major public cloud providers will expand our addressable market, and meet growing customer needs for more mobile, flexible, and secure computing solutions.”
HP’s formal press release was somewhat shy on exactly how it plans to integrate Teradici, beyond combining it with their own ZCentral Remote Boost software to create a strengthened product. However, ChannelBuzz followed up with HP to get specifics on what they intend, bearing in mind that nothing happens until the deal closes, which is expected to be in calendar Q4.
One key part of the plan is that the Teradici brand isn’t going anywhere. Current Teradici CEO David Smith will hold the title of global head and general manager of Teradici after the acquisition closes. HP also says that the plan is to integrate the talent from the Teradici team, although more details there won’t be forthcoming until the deal closes.
Teradici also has a large array of strategic partnerships with other vendors – some of whom are HP competitors – and the apparent plan here is to continue with these relationships.
“Teradici’s strong customer and partner ecosystem is part of what makes this a great fit,” said an HP spokesperson. “We will leverage the strengths of both companies to meet a wider range of customer needs, and Teradici will maintain its own brand as part of the broader HP portfolio. We’ll be able to talk more about future plans after the transaction closes.”
Similarly, HP intends to continue the rest of the Teradici portfolio.
“We see significant value in Teradici’s technical and software expertise and will look for opportunities to maximize this within HP offerings,” the spokesperson said.
The plans around the large channels of the two companies are not yet clear – these kinds of plans are seldom worked out until after the transaction is finalized – but the apparent plan is to maximize synergies in the way the two channels are brought together.
“HP’s channel is a very important part of its go-to-market and we are excited to welcome Teradici’s partners to the HP ecosystem,” the HP spokesperson said. “This acquisition further enhances HP’s and Teradici’s channel offerings. You may expect HP and Teradici to maximize the value we provide to our joint partner ecosystem. We will provide more information at deal close.”