Lexington’s also the home of WebProNews and publisher iEntry, Inc., so you might say we’re already a little partial. Acquiring Exstream also parks an HP property near rival Lexmark which was a spin-off of IBM’s printer-manufacturing division.

Details of the deal were not disclosed, but it likely cost HP a fair chunk since Exstream was most recently valued at about $913 million.

Expected to close in second quarter 2008, HP acquires with Exstream the company’s Dialogue software, which allows businesses to personalize customer mailings, both print and online. HP is hoping to integrate Exstream’s technology with HP’s printing presence.

Upon completion of the acquisition, Exstream Software will be integrated into the Web Services and Software business unit within the Imaging and Printing Group (IPG) of HP.

“Businesses – whether a bank, healthcare provider or utility company – need to communicate relevant, personalized information to their customers through a broad range of channels,” said David Murphy, senior vice president, Web Services and Software Business, IPG, HP.

“We expect that the acquisition of Exstream will allow HP to address a broader set of customers and be a strong leader in the fast-growing document automation market.”

That of course, all comes from a corporate statement, but we like what University of Kentucky president Lee Todd, Jr. had to say to the Lexington Herald Leader:

"I’m fond of saying that Kentuckians can compete," Todd said…. "Starting with a tremendous idea and intellectual capacity, they have become a globally competitive company. Now, they have attracted one of the world’s top technology companies to Kentucky as result of their ideas and their efforts."