Hewlett Packard Enterprise Completes Acquisition of SGI
PALO ALTO, CA--(Marketwired - Nov 1, 2016) - Hewlett Packard Enterprise (NYSE: HPE) today announced that it has completed its acquisition of SGI, a global leader in high performance solutions for compute, data analytics and data management, for $7.75 per share in cash.
SGI's highly complementary portfolio, including its in-memory high-performance data analytics technology and leading high-performance computing solutions will extend and strengthen HPE's current leadership position in the growing mission critical and high-performance computing segments of the server market. The combined HPE and SGI portfolio, including a comprehensive services capability, will support private and public sector customers seeking larger high-performance computing installations, including U.S. federal agencies as well as enterprises looking to leverage high-performance computing for business insights and a competitive edge.
"This deal combines SGI's computing strengths with HPE's global reach," said Antonio Neri, executive vice president and general manager, Enterprise Group, Hewlett Packard Enterprise. "SGI's technologies and services will further our position in high-performance computing and give our customers the best of data management capabilities for real time analytics."
High-performance computing is already an $11 billion segment, and it is expected to grow at an estimated 6-8% CAGR over the next five years.1 The combined HPE and SGI portfolio will accelerate the development of new solutions in fields such as weather mapping, genomics research, life sciences, and cybersecurity for both public and private organizations.
SGI has approximately 1,100 employees worldwide, and had $533 million in revenue for fiscal 2016. The deal is expected to be neutral to earnings in the first full year, and then accretive afterwards.
About Hewlett Packard Enterprise
Hewlett Packard Enterprise is an industry leading technology company that enables customers to go further, faster. With the industry's most comprehensive portfolio, spanning the cloud to the data center to workplace applications, our technology and services help customers around the world make IT more efficient, more productive and more secure.
Information set forth in this communication, including statements as to Hewlett Packard Enterprise's outlook and financial estimates and statements as to the expected effects of the acquisition by Hewlett Packard Enterprise of SGI, constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.