Story image

HPE to fork out more than $1 billion in acquisition of Nimble Storage

08 Mar 17

Hewlett Packard Enterprise (HPE) today made an enormous announcement – around about US$1.2b, to be (roughly) exact.

The company has entered into a definitive agreement to acquire Nimble Storage, provider of predictive all-flash and hybrid flash storage solutions.

HPE will pay $12.50 per share in cash, representing a net cash purchase price at closing of $1.0 billion. In addition to the purchase price, HPE will assume or pay out Nimble's unvested equity awards, with a value of approximately $200 million at closing.

There is no doubt that flash is a fast-growing market and an increasingly important element of today’s hybrid IT environment – IDC Research put the value of the overall flash market in 2016 to be US$15 billion, with a forecast of $20 billion by 2020.

In making its move to take over Nimble Storage, HPE is revealing its cards to expand its presence in this market.

HPE affirms Nimble’s predictive flash offerings for the entry to midrange segments are complementary to HPE’s scalable midrange to high-end 3PAR solutions and MSA products.

Sealing the deal with Nimble will allow them to deliver a full range of superior flash storage solutions for customers across every segment.

President and CEO of HPE, Meg Whitman says Nimble’s complentary portfolio will help HPE deliver on their vision of making Hybrid IT simple for their customers.

"This acquisition is exactly aligned with the strategy and capital allocation approach we've laid out,” Whitman says.

“We remain focused on high-growth and higher-margin segments of the market."

CEO at Nimble Storage, Suresh Vasudevan says the deal will accelerate the financial performance of the combined businesses by bringing together the complementary product portfolios and leveraging HPE's expansive go-to-market capability, partner ecosystem, and leading server platform.

"This acquisition validates our technology leadership in flash and in the use of cloud-based predictive analytics,” says Vasudevan.

“We're confident that by combining Nimble Storage's technology leadership with HPE's global distribution strength, strong brand, and enterprise relationships, we're creating expansion opportunities for the combined company."

Executive vice president and general manager of the Enterprise Group at HPE, Antonio Neri says looking ahead they have a clear product roadmap for their hybrid IT offerings, and the acquisition of Nimble fits snugly in it.

“Our storage DNA has never been stronger and our experience expanding 3PAR’s reach, without slowing down the innovation engine, will serve us well with Nimble,” Neri says.

“We are excited to welcome the Nimble team to HPE, and believe that together we will be a powerful force in the market and for our customers.”

The tender offer and merger and closing of the transaction are expected to be completed in April, subject to the satisfaction or waiver of the offer conditions set forth in the agreement.

Workday customers start deployments to AWS infrastructure
Business software vendor Workday has turned it's previously announced AWS partnership into a reality.
Royole's FlexPai: So bendable phablets are a reality now
A US-based firm called Royole is delivering on that age-old problem of not being able to fold up your devices (who hasn't ever wished they could fold their phone up...)
How to leverage cloud for data-driven business ops
The next gen of cloud-based data platform services are flexible and cost-effective so even small organisations can unlock data insights.
What MSPs can learn from Datto’s Channel Ransomware Report
While there have been less high profile attacks making the headlines, the frequency of attacks is, in fact, increasing.
Cisco expands security capabilities of SD­-WAN portfolio
Until now, SD-­WAN solutions have forced IT to choose between application experience or security.
IDC - Global digital transformation spend to near $2T by 2022
Hardware and services spending will account for more than 75% of all DX spending in 2019.
AlgoSec delivers native security management for Azure Firewall
AlgoSec’s new solution will allow a central management capability for Azure Firewall, Microsoft's new cloud-native firewall-as-a-service.
Gartner - Global RPA spending hitting its stride
The biggest adopters of RPA today include banks, insurance companies, utilities and telecommunications companies.