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HPE Completes Acquisition of SGI

For $7.75 per share in cash
This is a Press Release edited by on 2016.11.09

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Hewlett Packard Enterprise Development LP completed its acquisition of Silicon Graphics International Corp, in high performance solutions for compute, data analytics and data management, for $7.75 per share in cash.

SGI's complementary portfolio, including its in-memory high-performance data analytics technology and HPC solutions will extend HPE's position in the growing mission critical and HPC segments of the server market.

The combined portfolio, including a comprehensive services capability, will support private and public sector customers seeking larger HPC installations, including U.S. federal agencies as well as enterprises looking to leverage HPC for business insights and a competitive edge.

"This deal combines SGI's computing strengths with HPE's global reach," said Antonio Neri, EVP and GM, enterprise group, HPE. "SGI's technologies and services will further our position in HPC and give our customers the best of data management capabilities for real time analytics."

HPC is expected to grow at an estimated 6-8% CAGR over the next five years.

The combined 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.

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