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.
These statements are based on various assumptions and the current expectations of the management of Hewlett Packard Enterprise, and may not be accurate because of risks and uncertainties surrounding these assumptions and expectations. Factors listed below, as well as other factors, may cause actual results to differ significantly from these forward-looking statements. There is no guarantee that any of the events anticipated by these forward-looking statements will occur, or what effect they will have on the operations or financial condition of Hewlett Packard Enterprise. Forward-looking statements included herein are made as of the date hereof, and Hewlett Packard Enterprise undertakes no obligation to publicly update or revise any forward-looking statement unless required to do so by the federal securities laws.
These statements are based on the current expectations of the management of Hewlett Packard Enterprise and are subject to uncertainty and to changes in circumstances. Major risks, uncertainties and assumptions include, but are not limited to: the expected benefits and costs of the transaction; management plans relating to the transaction; statements of the plans, strategies and objectives of Hewlett Packard Enterprise for future operations, including the high performance computing and high growth big data analytics technologies and business in the server solutions and the mission-critical and high-performance computing markets; any statements regarding anticipated operational and financial results; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing; the risk that disruptions from the transaction will harm Hewlett Packard Enterprise's business; the effect of economic, competitive, legal, governmental and technological factors and other factors described under "Risk Factors" in each of Hewlett Packard Enterprise's and SGI's Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. However, it is not possible to predict or identify all such factors. Consequently, while the list of factors presented here is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties.
1 Source: IDC Worldwide HPC Server Forecast, 2016-2020, June 2016, Doc # US41318216