23 Jan

Why Hewlett-Packard Enterprise Acquired SimpliVity

WRITTEN BY Anne Shields FEATURED IN M&A and Event Driven

HPE shells out $650 million to acquire SimpliVity

Earlier in the series, we discussed VMware’s (VMW) focus on the HCI (hyper-converged infrastructure) space. We also discussed the benefits offered by HCI that contribute to its popularity.

VMware’s focus on HCI technology could get a boost due to its now being part of Dell technologies, as it should have greater access to Dell’s resources.

Why Hewlett-Packard Enterprise Acquired SimpliVity

Sensing this growing competition, on January 18, 2017, Hewlett-Packard Enterprise (HPE) announced its acquisition of SimpliVity. HPE made this cash acquisition for ~$650 million. SimpliVity’s acquisition is expected to close in 2Q17.

SimpliVity provides SDDC (software-defined data center) architecture and HCI technology. Though SimpliVity was founded in 2009, it began product shipments in 2012.

HPE targets a bigger share in the HCI space

Simplivity’s SDDC and peripheral component interconnect express (or PCIe) accelerator card have been integrated into the Cisco (CSCO) UCS (unified computing system) hardware platform. SimpliVity software can run on Amazon’s (AMZN) AWS (Amazon Web Services) platform.

According to Pitchbook, SimpliVity has raised $276 million in funding to date. According to a Business Insider article published in early 2015, SimpliVity‘s CEO, Doron Kempel, said that the company had a valuation of “more than $US1 billion.”

If that’s the case, Hewlett-Packard has managed to acquire a top-rated startup in the HCI space at a major discount.

Next, we’ll see how SimpliVity’s acquisition could provide a much-needed push to HPE’s offerings in the HCI space.

Latest articles

25 Mar

Oil Bulls: Is a Recession Coming?

WRITTEN BY Robert Scott

On March 15–22, US crude oil May futures rose 0.4% and closed at $59.04 per barrel.

25 Mar

Will Micron’s Revenue Growth Remain Sluggish?

WRITTEN BY Scarlett Ness

Micron has given a weaker-than-expected revenue forecast for the third quarter but expects memory chip demand to recover in the fourth quarter.

Signet Jewelers (SIG) is expected to report weak fourth-quarter results on April 3.

25 Mar

Energy Sector: Analyzing Key Events This Week

WRITTEN BY Robert Scott

The EIA is scheduled to release its oil and natural gas inventory data on March 27–28, which could be a short-term driver for oil and natural gas prices.

On March 22, J.P. Morgan (JPM) downgraded PPG Industries' (PPG) rating to "underweight" from "neutral."

25 Mar

Cannabis Sector: Mixed Bag Last Week


The week ending March 22 was a mixed bag for the cannabis sector. The cannabis sector ETFs ended largely in the negative territory.