HPE acquiring SGI in a $275 million deal

In a move which will give Hewlett Packard Enterprise (HPE) a substantial boost in big-data analytics and high-performance computing, the company said in a Thursday announcement that it will acquire HPC server maker SGI.

Sharing details about the financial terms of the acquisition, HPE said that it will pay approximately $275 million - or $7.75 per share - for acquiring SGI, in a cash and debt deal. SGI has a workforce of nearly 1,100 employees across the world.

The acquisition of SGI will apparently be a good fit for HPE as it would help the company advance its ambitions of expanding its data analytics business. Moreover, with SGI in its fold, HPE will also become a notably more competitive player in the high-performance computing arena, which is a growing commercial segment of the server market.

With regard to the acquisition of SGI, HPE specifically said in a statement that the in-memory high-performance data-analytics technology offered by SGI will give a significant boost to HPE's position in the HPC server market.

Towards that end, Antonio Neri -- chief of HPE's Enterprise Group -- said that the SGI acquisition will not just help HPE fortify its position in the high-growth big-data analytic segment, but will also enable HPE to extend its presence in "HPC verticals," including government, higher education and research, life sciences, and manufacturing and supercomputing.