HPE To Acquire Nimble Storage For $1.0 Billion

by CXOtoday News Desk    Mar 08, 2017

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Hewlett Packard Enterprise (HPE) announced it has entered into a definitive agreement to acquire Nimble Storage. 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.

Nimble’s predictive flash offerings for the entry to midrange segments are complementary to HPE’s scalable midrange to high-end 3PAR solutions and affordable MSA products. This deal will enable HPE to deliver a full range of superior flash storage solutions for customers across every segment. 

In addition, HPE plans to incorporate Nimble’s InfoSight Predictive Analytics platform across its storage portfolio, which will enable a stronger, simplified support experience for HPE customers.

“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 Meg Whitman, President and CEO, Hewlett Packard Enterprise. “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.”

Following the successful completion of the tender offer, the agreement provides that Nimble will merge with a subsidiary of HPE and become a wholly owned subsidiary of HPE, and all remaining outstanding shares of Nimble will receive in the merger the same consideration paid to other stockholders in the tender offer. 

Following the completion of the transaction, Nimble shares will be delisted from the New York Stock Exchange. 

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.

Veeam is a close partner of both HPE and Nimble, and is an enthusiastic supporter of the deal. “It’s a smart move for HPE as it expands their storage portfolio to serve even more market segments, and Nimble’s predictive flash arrays are certainly among the strongest solutions in the market” said Andy Vandeveld, VP of Global Alliances at Veeam.

“The storage industry is no stranger to consolidation, and as flash and hybrid flash arrays become the norm in the enterprise data center, it makes sense that the big players would seek to acquire advanced solutions that will give them a competitive edge. And it gives Veeam customers the opportunity to have an end-to-end integrated approach with Veeam, HPE and Nimble technologies,” Vandeveld commented.