HPE To Acquire Nimble Storage

Just weeks after filing a portfolio hole by acquiring $Simplivity for $650 million, #HPE is back at it, this time doling out $1 billion (plus $200 million in unvested equity awards) for once-hybrid-startup #Nimble Storage. HPE feels Nimble will fill a gap in the midmarket, where apparently HPE is not resonating well, even with low-cost #3PAR bundles, #MSA, #StoreEasy NAS, #StoreVirtual and even #vSAN Ready Nodes. Both purchases are relatively low risk for HPE, as Simplivity and Nimble were both perpetually operating at a loss. Nimble was clearly in a dire situation having to accept $12.50 per share. Though a 45% premium over yesterday's close, that's still roughly half of where it traded in the fall of 2015 and way off the peak of almost $53 in 2014. For its part though, HPE has the marketing team, engineering resources and support infrastructure to continue to offer Nimble's 10,000 customers a good experience, while mapping out a plan to integrate with HPE's other storage assets over time.

http://www.storagereview.com/hpe_to_acquire_nimble_storage