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How HPE Is Aiming to Grow through Acquisitions

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Nimble Storage acquisition valued at $1 billion

In April 2017, Hewlett Packard Enterprise (HPE) announced that the firm had completed the Nimble Storage (NMBL) acquisition. According to the terms of the deal, HPE paid $12.5 per share in cash, valuing the acquisition at $1 billion. In addition, HPE also paid Nimble’s unvested equity awards worth $200 million.

This acquisition might be highly beneficial to HPE as the flash storage market is projected to reach $20 billion in 2020 from $15 billion (according to IDC) at the end of 2016, growing at a CAGR (compound annual growth rate) of almost 17%. As per Nimble Storage’s press release, this acquisition “Creates a comprehensive, leading-edge storage portfolio by bringing together Nimble’s predictive flash offerings for the entry to midrange segments with HPE’s scalable midrange to high-end 3PAR solutions, SimpliVity solutions and affordable MSA products.”

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Nimble Storage provides all-flash and hybrid-flash storage solutions and competes with NetApp (NTAP), Dell Technologies (DVMT), and Western Digital (WDC) in the storage segment. The firm was founded in 2007 and has over 1,300 employees. In the last fiscal year, Nimble Storage announced revenue of $402 million, a rise of 25% YoY.

HPE closes SimpliVity and CSC acquisition

In May 2016, Computer Science (CSC) announced a merger with the Enterprise Services segment of Hewlett Packard Enterprise. The new company will be called DXC Technology (DXC) with estimated annual revenue of $28 billion.

In January 2017, Hewlett Packard Enterprise announced the acquisition of SimpliVity for $650 million in cash. SimpliVity is one of the leading providers of hyperconverged infrastructure. HPE estimates the hyperconverged market will reach $2.4 billion in 2016 and expects this segment to grow at a CAGR (compound annual growth rate) of 25% to $6 billion by 2020.

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