HPE Buys Nimble Storage for $1B
March 7, 2017
Packard Enterprise has entered into a definitive agreement to acquire
Nimble Storage, the San Jose, Calif.-based provider of predictive
all-flash and hybrid-flash storage solutions. HPE will pay $12.50 per
share in cash, representing a net cash purchase price at closing of $1.0
billion. In addition to the purchase price, HPE will assume or pay out
Nimble's unvested equity awards, with a value of approximately $200
million at closing.
Flash storage is a fast-growing market and an increasingly important
element of today's hybrid IT environment. The overall flash market was
estimated to be approximately $15 billion in 2016 and is expected to be
nearly $20 billion by 2020, with the all-flash segment growing at a
nearly 17 percent compound annual growth rate1.
Nimble's predictive flash offerings for the entry to midrange segments
are complementary to HPE's scalable midrange to high-end 3PAR solutions
and affordable MSA products. This deal will enable HPE to deliver a full
range of superior flash storage solutions for customers across every
In addition, HPE plans to incorporate Nimble's InfoSight Predictive
Analytics platform across its storage portfolio, which will enable a
stronger, simplified support experience for HPE customers. For example,
InfoSight automatically detects 90 percent of all issues within a
customer's infrastructure, and resolves over 85 percent of them. This
dramatically reduces the amount of time and effort a customer's IT team
spends on support activities.
"Nimble Storage's portfolio complements and strengthens our current 3PAR
products in the high-growth flash storage market and will help us
deliver on our vision of making Hybrid IT simple for our customers,"
said Meg Whitman, President and CEO, Hewlett Packard Enterprise. "And,
this acquisition is exactly aligned with the strategy and capital
allocation approach we've laid out. We remain focused on high-growth and
higher-margin segments of the market."
Nimble Strengthens and Expands HPE's Flash Storage Portfolio
Nimble was founded in 2007 and has approximately 1,300 employees
worldwide. The company delivered revenue of $402 million in its most
recent fiscal year, up 25 percent year over year. Nimble's strong
application performance in its entry to midrange flash storage solutions
is backed by an intelligent, predictive analytics engine that delivers a
simplified customer experience. This unique analytics platform goes
beyond storage to analyze performance issues across the full data path,
from apps to the array, and resolves most issues before they occur. In
addition, Nimble has recently introduced multicloud storage services
that combine the best of on-premises and public cloud storage
capabilities for Hybrid IT deployments.
Key customer benefits of the combined HPE and Nimble portfolio include:
•The ability to seamlessly move
data and replicate across hybrid flash and all-flash storage to meet
unpredictable IT demands
•Integrated data protection with
application aware snapshots, encryption, replication and integration
with leading independent software vendors
•Effortless management of storage
volumes along with data compaction to reduce capacity costs
•Predictive support automation to
anticipate and prevent most problems and solve remaining issues in a
matter of minutes
•Quality of service controls and
full stack analytics to ensure predictable performance in hybrid IT
•Increased dedicated sales specialist support
•A future-proofed technology
platform with a rich roadmap to support next-generation storage
"Customers deploying hybrid IT not only need the performance of flash
storage but are looking for predictive intelligence to optimize their
infrastructure," said Antonio Neri, Executive Vice President and General
Manager of the Enterprise Group, Hewlett Packard Enterprise. "With
Nimble Storage and 3PAR, we can now deliver on those storage needs and
provide more effective on-premises control and performance, at public
Deal Accelerates Nimble Financial Performance
By bringing together complementary product portfolios and leveraging
HPE's expansive go-to-market capability, partner ecosystem, and leading
server platform, HPE and Nimble will be able to significantly accelerate
the financial performance of the combined business.
"Over 10,000 enterprises are using Nimble Storage because our Predictive
Cloud Platform is reliably fast, radically simple, and cloud ready,"
said Suresh Vasudevan, CEO at Nimble Storage. "This acquisition
validates our technology leadership in flash and in the use of
cloud-based predictive analytics. We're confident that by combining
Nimble Storage's technology leadership with HPE's global distribution
strength, strong brand, and enterprise relationships, we're creating
expansion opportunities for the combined company."
The deal is expected to be accretive to HPE earnings in the first full
fiscal year following the close.
the terms of the agreement, a subsidiary of HPE will commence a tender
offer to purchase any and all of the outstanding shares of Nimble common
stock for $12.50 per share in cash. Nimble stockholders representing
approximately 21 percent of Nimble's outstanding shares have entered
into a Tender and Support Agreement committing them to tender their
shares into the tender offer. The completion of the tender offer is
subject to customary terms and closing conditions, including Nimble
stockholders tendering a majority of Nimble's outstanding shares in the
offer, and receipt of specified regulatory approvals.
Following the successful completion of the tender offer, the agreement
provides that Nimble will merge with a subsidiary of HPE and become a
wholly owned subsidiary of HPE, and all remaining outstanding shares of
Nimble will receive in the merger the same consideration paid to other
stockholders in the tender offer.
Following the completion of the transaction, Nimble shares will be
delisted from the New York Stock Exchange.
The tender offer and merger and closing of the transaction are expected
to be completed in April, subject to the satisfaction or waiver of the
offer conditions set forth in the agreement.