Company - - Mar 08,2017
According to the deal, HPE Co. will pay $12.50 per share in cash for Nimble Storage Inc., which shows a 45 percent premium to Nimble’s closing share price on Monday.
In 2015, Mrs. Meg Whitman divided HP into two parts: the Hewlett-Packard Enterprise Co. & Hewlett Packard Inc. Presently, her aim is to create HPE Co. as a more flexible unit.
The California-based, Hewlett Packard Enterprise Co. is trying to swell up its presence in the business of rapidly-growing flash storage, and the purchase of Nimble Storage Inc., which uses flash memory chips, is part of its expansion process.
According to the CEO of HPE Co., Meg Whitman, this newly offered contract with Nimble will remarkably increase the company’s business into flash-storage data.
In the quarter ended on January 31, HPE posted the drop of 10 percent in its profits, while Nimble stated that its revenue increased 26 percent to $102 million in the quarter which ended on October 31.
According to the US-based market research company, International Data Corp.’s projection, the flash storage market was estimated to be around $15 billion in 2016 and will increase up to $20 billion by the year 2020.
HPE Co. announced two multibillion-dollar deals in 2016, which should be accomplished by the company in the present year. In May 2016, the company stated that it would combine its technology-services with IT company, Computer Sciences Corp. and later in the month of September HPE Co. declared a merger of several of its software assets with the UK-based firm, Micro Focus International Plc.
Meg Whitman said in a statement that the company is still focused on some segments of the market like high-growth and higher-margin.
Nimble, founded in 2007, currently employs almost 1300 candidates. After the completion of the tender, the firm will become a wholly-owned subsidiary of HPE Co.
The deal is expected to reach its final terms next month.