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HP (HPQ) Completes Teradici Acquisition, Strengthens Presence

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HP Inc. (HPQ - Free Report) recently announced that it has completed the acquisition of the Canada-based global remote computing software innovator, Teradici Corporation. The financial terms of the deal, which was announced in July, have been kept under wraps.

Teradici’s solutions enable secure access to high-performance computing from any PC, tablet or Chromebook. Thus, the acquisition is likely to broaden HP’s capabilities in the Personal Systems segment by delivering new compute models and software-enabled digital solutions, which are compliant with the hybrid work environment. It will also propel the company’s remote services and solutions to new heights.

HP will be offering a single subscription for Teradici’s Engineering Emmy-Award-Winning solution, Cloud Access Software (“CAS”) and HP’s ZCentral Remote Boost Software to its broad customer base. CAS will enable the delivery of a highly responsive remote desktop experience with lossless, color-accurate, and distortion-free graphics.

The subscription, which will be available by the end of this year, is likely to expand Teradici’s, the PCoIP (PC-over-IP technology) creator, global reach.

HP Inc. Price and Consensus

HP Inc. Price and Consensus

HP Inc. price-consensus-chart | HP Inc. Quote

As the work-and-learn from home trend continues and likely to sustain in the post-pandemic scenario, people and organizations are spending more on remote services and improving at-home technology products. This, in turn, is driving demand for HP’s products.

In June, HP completed the HyperX buyout. The gaming division of Kingston Technology Company, HyperX, is likely to provide a boost to HP’s Personal System business segment, which comprises gaming and peripheral services.

During third-quarter fiscal 2021, HP’s Personal Systems revenues, which include commercial and consumer desktops and notebooks, personal computers, workstations, thin clients, commercial mobility devices, retail point-of-sale systems, displays and other related accessories, software, support and services, accounted for a whopping 68% of net revenues.

Zacks Rank & Other Key Picks

HP currently flaunts a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the broader technology sector include Square (SQ - Free Report) , Avnet (AVT - Free Report) and Nikon (NINOY - Free Report) , all sporting a Zacks Rank #1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term earnings growth rate for Square, Avnet and Nikon is currently pegged at 31.4, 25.4% and 51.6%, respectively.

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