Hewlett Packard Enterprise (HPE) completed its previously-announced acquisition of Silver Peak. The deal was valued at $925 million. Silver Peak will become a part of Aruba, a Hewlett Packard Enterprise company.
HPE said the acquisition will strengthen Aruba ESP (Edge Services Platform), helping to advance enterprise cloud transformation with a comprehensive edge-to-cloud networking solution covering all aspects of wired, wireless local area networking (LAN) and wide area networking (WAN).
“WAN transformation is a key component of HPE’s Intelligent Edge and edge-to-cloud vision and growth strategy,” said Antonio Neri, president and CEO of HPE. “Armed with a comprehensive SD-WAN portfolio with the addition of Silver Peak, we will accelerate the delivery of a true distributed cloud model and cloud experience for all apps and data wherever they live.”
“I am very excited to welcome the Silver Peak team to the Aruba family,” said Keerti Melkote, president of Intelligent Edge for Hewlett Packard Enterprise and founder of Aruba Networks. “With the evolving nature of the hybrid workplace, enterprises are looking to extend connectivity to branch locations and enable secure work-from-home experiences. By combining Silver Peak’s advanced SD-WAN technology with Aruba’s SD-Branch and remote worker solutions, customers can simplify branch office and WAN deployments to empower remote workforces, enable cloud-connected distributed enterprises, and transform business operations without compromise.”
As part of the acquisition, Silver Peak founder and CEO David Hughes, will join HPE as the senior vice president of the WAN business within Aruba.
HPE to acquire Silver Peak for $925M and merge it with Aruba
Hewlett Packard Enterprise (HPE) agreed to acquire Silver Peak, an SD-WAN leader, for $925 million in cash. Silver Peak will be combined with HPE’s Aruba business unit and will extend Aruba’s technology leadership in the large and fast-growing SD-WAN space.
Silver Pek, which was founded in 2004 and is a private company based in San Jose, California, has more than 1,500 production SD-WAN customers around the world. The company is headed by its founder, David Hughes.
HPE said Silver Peak’s advanced SD-WAN offerings are highly complementary and strengthen Aruba’s Edge Service Platform (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.
HP Brings in Aruba to Manage its Networking Business
HP agreed to acquire Aruba Networks for $24.67 per share in cash, reflecting an equity value of approximately $2.7 billion net of cash and debt.
Aruba, which is based in Sunnyvale, California, is a leading supplier of WLAN solutions for enterprises. The company had revenues of $729 million in fiscal 2014, and has reported compound annual revenue growth of 30 percent over the last five years. It has approximately 1,800 employees. Aruba has made rapid progress in 802.11ac Wi-Fi upgrades. It offers integrated solutions for many vertical market segments, such as retail or healthcare.
HP said Aruba's marketing and channel model will complement its own networking business and go-to-market breadth. Together, the companies will focus on next-generation converged campus solutions, leveraging the strong Aruba brand. This new combined organization will be led by Aruba’s Chief Executive Officer Dominic Orr, and Chief Strategy and Technology Officer, Keerti Melkote, reporting to Antonio Neri, leader of HP Enterprise Group. With this move, HP will be uniquely positioned to deliver both the innovation and global delivery and services offerings to meet customer needs worldwide.
