Plus   Neg

Hewlett Packard Enterprise To Acquire Silver Peak For $925 Mln - Quick Facts

Hewlett Packard Enterprise Co. (HPE) said Monday it has agreed to acquire Silver Peak, an SD-WAN (Software-Defined Wide Area Network) provider, for about $925 million in cash. The company noted that acquisition of Silver Peak will accelerate its edge-to-cloud strategy.

Silver Peak will be combined with HPE's Aruba business unit and will extend Aruba's presence in the large and fast-growing SD-WAN space. The transaction is expected to close in the fourth quarter of HPE's fiscal year 2020.

HPE noted that Silver Peak's SD-WAN offerings are highly complementary and will strengthen Aruba's Edge Service Platform or ESP.

By combining Silver Peak's SD-WAN with Aruba's SD-Branch solutions, customers can simplify branch office and WAN deployments to empower remote workforces, enable cloud-connected distributed enterprises, and transform business operations without compromising quality or reliability.

Silver Peak has more than 1,500 production SD-WAN customers around the world. The company helps enterprises and service providers quickly migrate to secure enterprise-grade SD-WAN connectivity, while improving application performance and lowering connectivity costs.

650 Group has projected that the market for SD-WAN will grow from $2.3 billion in 2020 to $4.9 billion in 2024, representing a +20.5 percent CAGR.

HPE said it expects the acquisition to drive significant revenue opportunities and to be accretive to Intelligent Edge segment revenue growth as well as gross margin. The company also expects the transaction to be neutral to its adjusted earnings in fiscal 2021.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
The U.S. Food and Drug Administration (FDA) has gone ahead with the approval of antiviral drug remdesivir as first treatment for COVID-19, notwithstanding last week's findings by the World Health Organization (WHO) that the drug is not effective for COVID-19 treatment. Thursday, Gilead Sciences announced that the FDA approved remdesivir, sold under the brand name Veklury. Integrated payments firm American Express Co. (AXP) reported Friday that net income for the third quarter declined to $1.1 billion or $1.30 per share from $1.8 billion or $2.08 per share in the prior-year quarter. Consolidated total revenues, net of interest expense, also decreased 20 percent to $8.8... The Federal Trade Commission or FTC has launched a new fraud reporting platform, using which, consumers can easily report fraud and all other consumer issues directly to the regulator. In a statement, the FTC said its new website, ReportFraud.ftc.gov, will provide a streamlined and user-friendly way to submit reports about scams, frauds, and bad business practices.
Follow RTT