Hewlett Packard Enterprise To Buy SimpliVity For $650 Mln

(RTTNews) - Hewlett Packard Enterprise (HPE) Tuesday said it agreed to buy SimpliVity, a provider of software-defined, hyperconverged infrastructure, for $650 million in cash.

The hyperconverged market was estimated to be about $2.4 billion in 2016, and is expected to grow at a compound annual growth rate of 25 percent, to nearly $6 billion, by 2020, the company said.

HPE believes that by combining its infrastructure, automation and cloud management software with SimpliVity's software-defined data management platform will help the company deliver the industry's only "built-for-enterprise" hyperconverged offering.

"This transaction expands HPE's software-defined capability and fits squarely within our strategy to make Hybrid IT simple for customers," said Meg Whitman, President and CEO, Hewlett Packard Enterprise. "More and more customers are looking for solutions that bring them secure, highly resilient, on-premises infrastructure at cloud economics. That's exactly where we're focused."

HPE expects the acquisition to be accretive to earnings in the first full fiscal year. The company expects to closed the deal in the second quarter, subject to regulatory review and approval.