Hewlett Packard Enterprise to acquire SGI
Hewlett Packard Enterprise has signed an agreement to acquire SGI, a provider of solutions for compute, data analytics and data management, for $7.75 per share – a transaction valued at approximately $275 million.
SGI products and services are used for high-performance computing and big data analytics in the scientific, technical, business and government communities to solve challenging data-intensive computing, data management and virtualisation problems. The company has approximately 1,100 employees worldwide, with revenues of $533 million in 2016.
'At HPE, we are focused on empowering data-driven organisations,' said Antonio Neri, executive vice president and general manager, Enterprise Group, Hewlett Packard Enterprise. 'SGI's innovative technologies and services, including its best-in-class big data analytics and high-performance computing solutions, complement HPE's proven data centre solutions designed to create business insight and accelerate time to value for customers.'
The companies say that SGI's highly complementary portfolio, including its in-memory high-performance data analytics technology, will extend and strengthen HPE's 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 supercomputer installations, including U.S. federal agencies as well enterprises looking to leverage high-performance computing for business insights and a competitive edge.
'Our HPC and high-performance data technologies and analytic capabilities, based on a 30-year legacy of innovation, complement HPE's industry-leading enterprise solutions. This combination addresses today's complex business problems that require applying data analytics and tools to securely process vast amounts of data,' said Jorge Titinger, CEO and president of SGI.
'The computing power that our solutions deliver can interpret this data to give customers quicker and more actionable insights. Together, HPE and SGI will offer one of the most comprehensive suites of solutions in the industry, which can be brought to market more effectively through HPE's global reach.'