HPE to acquire Silver Peak for $925m

HPE to acquire Silver Peak for $925m

27 July 2020 | Natalie Bannerman

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Hewlett Packard Enterprise (HPE) has entered into a definitive agreement to acquire Silver Peak, for $925 million.

Once completed, Silver Peak will merge with HPE’s Aruba business unit, extending Aruba’s technology leadership in the SD-WAN space.

“With this acquisition we are accelerating our edge-to-cloud strategy to provide a true distributed cloud model and cloud experience for all apps and data wherever they live,” said Antonio Neri (pictured), president and CEO of HPE.

“Silver Peak’s innovative team and technology bring critical capabilities that will help our customers modernise and transform their networks to securely connect any edge to any cloud.”

Together, Silver Peak’s advanced SD-WAN offerings with Aruba’s Edge Service Platform (ESP) 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’s technology transforms legacy WAN architectures to self-driving WANs, which is a perfect fit with Aruba’s cloud-native, AI-driven Edge Services Platform,” said Keerti Melkote, president of intelligent edge for Hewlett Packard Enterprise and founder of Aruba Networks.

“Together, we will be able to meet these needs with critical connectivity, security, and AI capabilities to drive the next generation of Edge-to-Cloud transformation.”

There are also financial synergies through the transaction, together Aruba and Silver Peak will result in an enhanced financial profile for HPE’s Intelligent Edge business.  

The combined entity is expected to drive significant revenue opportunities and to be accretive to Intelligent Edge segment revenue growth and gross margin.

“The Silver Peak and Aruba teams share a common vision and goal to provide simplicity, scalability, and application-awareness at the edge,” said David Hughes, founder and CEO of Silver Peak.

“With Aruba’s extensive go-to-market, we will further accelerate our ability to drive faster adoption of these transformational technologies. We are excited for the opportunities we will have as a combined team to accelerate innovation in this fast-growing segment of the networking market.”

The deal is set to close Q4 of HPE’s fiscal year 2020, subject to standard regulatory approvals and other closing conditions.