To expand its presence in the fast growing flash storage business, Hewlett Packard Enterprise Co said it would buy data storage provider Nimble Storage Inc for $1.09 billion in cash.
HPE is the enterprise information company formed in 2015 after its split from the computer and printing company Hewlett-Packard, which is now renamed as HP Inc.
Nimble Storage is based out of San Jose, California and is a provider of predictive all-flash and hybrid-flash storage solutions.
HPE will be paying $12.50 per share in cash, representing a net cash purchase price at closing at $1.0 billion. In addition to the price tag, HPE will also be paying out Nimble’s unvested equity awards, with a value of approximately $200 million at closing.
Flash storage is an increasingly important element of today’s hybrid IT environment and is growing very fast. The overall flash market is expected to grow from approximately $15 billion in 2016 to $20 billion by 2020. The all-flash segment is also growing at a nearly 17 percent compound annual growth rate.
Nimble’s predictable flash offerings at various midrange segments is complementary to HPE’s scalable high-end solutions in 3-PAR and MSA products. The deal will help HPE to provide range of varied superior flash storage solutions for customers across every segment.
By bringing together products from both sides and leveraging HPE’s vast go-to-market capability and leading server platform, the new created amalgamation will be able to significantly accelerate the financial performance of the combined business.
Following the successful completion of the deal the agreement states that Nimble will be merging with a subsidiary of HPE and become a completely owned subsidiary of HPE. It also mentions that all remaining outstanding shares of Nimble will receive the same consideration paid to other stockholders in the tender offer.