Hewlett Packard Enterprise (HPE
), has announced the acquisition of California-based
SGI (formerly known as Silicon Graphics International) for $7.75 a share, $275 million (approximately), in an all cash deal and company debt. The company claims the acquisition to be ‘gold
’ for its data analytics and high performance computing (HPC) verticals. HPC operates in sectors such as government, life sciences, higher education and research, and manufacturing, as well as supercomputing. However, the transaction is subjected to customary approvals and closing conditions and is expected to close in the first quarter of HPE’s fiscal year 2017.
Reportedly, SGI products and services are used for high-performance computing (HPC) and big data analytics in the scientific, technical, business and government communities to solve challenging data-intensive computing, data management and virtualization problems. The joint integration will potentially help HPE bolster its enterprise-focused hardware and software with storied HPC gear.
In a blog post, Antonio Neri, Executive Vice President and General Manager, Enterprise Group, HPE, said that the acquisition will enable HPE to combine both company’s best-in-class portfolios, including its compute solutions and SGI’s in-memory, high-performance data analytics technology, and provide its customers with sophisticated solutions designed to solve the world’s toughest problems.
Together, HPE and SGI will offer one of the technology industry’s most comprehensive suites of data analytics products and services helping organizations extract maximum insights from exploding data volumes more quickly, drive business automation and innovation, and gain a competitive edge.
Leveraging deep expertise in high performance computing, SGI data analytics solutions claims to optimize SAP HANA, Oracle Database In-Memory, Hadoop and achieve greater insight and real-time business insights. Dating back to 1981, SGI has been through turbulent times, when it filed bankruptcy in 2009. Following, in the same year, it was acquired by Rackable Systems
, which later adopted the SGI branding.
Jorge Titinger, CEO and President, SGI, also stated:
Our HPC and high performance data technologies and analytic capabilities, based on a 30+ year legacy of innovation, complement HPE’s industry-leading enterprise solutions. This combination addresses today’s complex business problems that require applying data analytics and tools to securely process vast amounts of data.
He said that the computing power that our solutions deliver can interpret this data to give customers quicker and more actionable insights. Together, HPE and SGI will offer one of the most comprehensive suites of solutions in the industry, which can be brought to market more effectively through HPE’s global reach.
Although this isn’t the first time SGI and HPE have joined forces. Earlier in February, SGI signed an OEM agreement with HPE
to deliver SGI UV Technology through HPE Mission Critical Solutions and boost real-time analytics.