HPE bolsters data analytics efforts with $275M SGI purchase

Dive Brief:

  • Hewlett Packard Enterprise (HPE) announced Thursday it will acquire SGI, a provider of high-performance computing (HPC), data analytics and data management solutions.
  • HPE is paying $7.75 per share in cash, in a transaction valued at approximately $275 million. 
  • SGI has about 1,100 employees and had revenues of $533 million in fiscal 2016.

Dive Insight:

HPE CEO Meg Whitman has been working to turn the company around, including shedding underperforming business units, such as its IT services division. The purchase of SGI aligns with Whitman’s strategy to move the company in new directions.

The acquisition could help HPE strengthen its offerings in the HPC and data analytics areas.  The HPC segment is growing at an estimated 6-8% CAGR, while the data analytics segment is growing at more than twice that rate, according to IDC.

The deal will also expand HPE’s existence in markets where demand for HPC is strong, such as government, research and life sciences.

Antonio Neri, executive vice president and general manager of the Enterprise Group at HPE, said the purchase of SGI will help HPE continue its focus on "empowering data-driven organizations."

Filed Under: IT Strategy Big Data
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