HPE buys high-performance computing outfit SGI
Hewlett Packard Enterprise has written a cheque for SGI, a company that makes servers, storage, and software for high-performance computing.
The deal set HPE back $275 million in cash and debt.
SGI was started in 1981 by Jim Clark, who later cofounded Netscape. It has been declining for years and was de-listed from the New York Stock Exchange, and filed for Chapter 11 bankruptcy in 2009. It was bought by Rackable Systems, which later adopted the SGI branding.
In a statement a spokesHPE said that by combining complementary product portfolios and go-to-market approaches the two outfits can strengthen the leading position and financial performance of the combined business.
Basically by combining itself with another legacy Silicon Valley brand, HPE is bolstering its enterprise-focused hardware and software with storied HPC gear.
SGI brought in $533 million in revenue in its 2016 fiscal year and has 1,100 employees, according to the statement. Customers include the Tagged, Sigma-Aldrich, and the United States Postal Service.
HPE thinks buying SGI will be neutral in terms of its financial impact in the year after the deal is closed, which should happen in the first quarter of HPE’s 2017 fiscal year, and will later be a catalyst for growth.