Hewlett Packard Enterprise said on Monday it would spend more than $1 billion to acquire flash-storage company Nimble Storage. HPE has agreed a deal for $12.50 per Nimble Storage share, representing a premium of 45.3 percent to the company’s Monday closing price.
"Nimble Storage's portfolio complements and strengthens our current 3PAR products in the high-growth flash storage market and will help us deliver on our vision of making Hybrid IT simple for our customers," said CEO Meg Whitman in a statement. "And, this acquisition is exactly aligned with the strategy and capital allocation approach we've laid out. We remain focused on high-growth and higher-margin segments of the market."
Whitman has made flash storage a key area of focus for the company since they split from Hewlett-Packard in 2015. The overall flash storage market reached $15 billion in 2016, according to IDC, and is expected to grow to almost $20 billion by 2020. In addition, Mordor Intelligence estimate that the fast-growing enterprise flash storage market was worth $1.6 billion in 2016. This acquisition will enable HPE to deliver a full of superior flash storage solutions for customers across every segment.
Nimble Storage was founded in 2007 and is currently based in San Jose, California. It specializes in hardware and software products for data storage, specifically data storage arrays that use the iSCSI and Fibre Channel protocols and includes data backup and data protection features. The company delivered revenue of $402 million in its most recent fiscal year.
"Over 10,000 enterprises are using Nimble Storage because our Predictive Cloud Platform is reliably fast, radically simple, and cloud ready," said Suresh Vasudevan, CEO at Nimble Storage. "This acquisition validates our technology leadership in flash and in the use of cloud-based predictive analytics. 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."
As part of the deal, HPE will also assume Nimble’s unvested equity awards, which are worth about $200 million.
HPE has been making a concerted effort in recent months to expand its data center portfolio. In January, HPE spent $650 million for SimpliVity, a cloud computing infrastructure company. It also acquired Cloud Cruiser, an IT analytics company, for an undisclosed sum.
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