Hewlett Packard NYSE: HPE has completed its acquisition of Nimble Storage (NMBL) on Monday, according to a company press release. Hewlett Packard Enterprise paid a net cash value of $1 billion for the company, or $12.50 per share. The company is responsible for $200 million of Nimble’s invested equity awards.
Hewlett Packard NYSE: HPE has expanded the company’s market share in flash and hybrid-flash storage solutions following the acquisition. The flash storage market has an estimated value of $15 billion, with expectancy to rise to $20 billion by 2020, a 17% company growth rate.
The companies will combine Hewlett Packard Enterprise 3PAR solutions with Nimble’s flash products to better serve the entry- and mid-level customers.
Nimble shares are expected to be delisted on Monday morning following the deal’s closing. Hewlett Packard NYSE: HPE will be the sole owner of the company.
Hewlett Packard NYSE: HPE Stock Lower
The company’s stock is down 0.33% on Monday following the announcement.
The buyout allows Hewlett Packard Enterprise to expand further in the flash storage market. The company has made numerous acquisitions following its split from Hewlett Packard (HPQ). The company notably acquired Silicon Graphics and signed agreements to acquire Cloud Cruiser, SimpliVity and Niara.
Nimble fits into the company’s strategy to enhance its cloud capabilities.
Nimble also offers its InfoSight Predictive Analytics platform, which will allow the company to better support existing customers. Hewlett Packard Enterprise will also get a boost in the company’s all-storage portfolio. This has struggled in recent quarters, with a notable decline last quarter.
The company expects the Nimble acquisition to provide immediate earnings during the first fiscal year of ownership.
Nimble has a customer base of over 10,000 and has 1,300 employees that will help boost Hewlett Packard Enterprise’s development team.
Hewlett Packard Enterprise’s stock plummeted in the last 30 days, falling over 21% after the company’s quarterly report showed a decline in sales.