HPE acquires rivals SimpliVity for £527.21m

HPE acquires rivals SimpliVity for £527.21m

Unified IT and networking experts HP enterprise have purchased rivals Simplivity for £527.21million ($650mion), well below the previous valuation at £810.6million ($1 billion).


HPE’s statement suggests the purchase will advance their ‘strategy in the fast-growing, high-margin hyperconverged market.’ Hyperconvergence relates to IT systems intergrating computing, storage and network solution as an out-the-box, easy to manage solution.


Commenting on the cash purchase, HPE president and CEO Meg Whitmen said, ‘This transaction expands HPE’s software-defined capability and fits squarely within our strategy to make Hybrid IT simple for customers.’


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.’


Meanwhile over at SimpliVity, their chairman and CEO Doron Kempel described the advantages of the buy out ‘HPE’s broad sales reach, extensive partner channel, complementary technology and commitment to innovation will accelerate SimpliVity’s journey and significantly strengthen our ability to deliver the best-in-class hybrid IT solutions our customers are looking for.’


Both HPE and SimpliVity have competing hyperconvereged systems. A statement by HPE explains that their will be no immediate change in the supply and channel arrangements for either SimpliVity’s or HPE’s products, though within 60 days of closing the transaction, HPE will begin offering SimpliVity Omni Stack software on their ProLiant DL380 servers. This will be followed by further software-hardware intergration in the second half of the year, with HPE predicting new workspace and predictive analysis tools.


The transaction is expected to close in the second quarter of HPE’s fiscal year 2017, subject to regulatory review and approval.


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