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January 18, 2017

HP to acquire SimpliVity for $650M

PHOTO/MATT VOLPINI Doron Kempel, CEO, SimpliVity, at the company's Westborough office.

California computer giant Hewlett Packard Enterprises plans to acquire Westborough data storage provider SimpliVity for $650 million, which is a significant decrease over its assessed value two years ago.

HP announced late Tuesday it had entered into an agreement to buy the privately held Westborough technology firm in an all-cash deal, which is expected to close by May. Within 60 days of the deal closing, HP expects to offer SimpliVity’s Omni Stack software in HP servers, which will help them run more efficiently and hold more data.

In March 2015, SimpliVity’s value was assessed at $1 billion when it raised $175 million in funding, so the price tag that HP plans to purchase the company represents a 35-percent decrease in SimpliVity’s value. The market has grown more competitive in the last two years, with California data storage provider Nutanix Inc. going public and Texas computer giant Dell buying Hopkinton-based EMC Corp., in part for its data storage software.

HP said in its announcement it bought SimpliVity – which was founded in 2009 – because of its leading capabilities in hyperconverged infrastructure, which HP expects to be a $6 billion market by 2020.

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