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Is Hewlett Packard Enterprise sizing up SimpliVity?

By James Henderson | Nov. 15, 2016
The bid is being considered in billions.

Hewlett Packard Enterprise is weighing up the possibility of acquiring SimpliVity, with the tech giant rumoured to be considering a $US3.9 billion bid for the hyper-converged infrastructure vendor.

Following a week of media rumours, speculation that a deal is close has intensified despite both parties declining to comment on the news.

Should a deal be struck, the acquisition would considerably bolster HPE’s hyper-converged infrastructure portfolio, bringing on board the market’s fastest growing vendor, ahead of industry leader Nutanix.

In addition, the $US3.9 billion price tag would see the company’s value quadruple, following its $1 billion valuation in 2015.

As outlined by recent Gartner findings, SimpliVity continues to capture market share with 110.7 per cent growth, ahead of Nutanix with 77.4 per cent during the past 12 months.

“Regarding the most recent wave of rumours - as you can appreciate, our standard response to all inquiries is that SimpliVity does not comment on rumours or speculation,” SimpliVity CEO, Doron Kempel, said.

Founded in 2009, the US-based company has raised $US276 million in venture capital, employing over 750 staff worldwide.

Billed as a pioneer in the hyper converged infrastructure market, SimpliVity’s offering span data centre, cloud, VDI, disaster recovery and data protection.

 

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