Combination creates comprehensive networking portfolio to accelerate customers’ edge-to-cloud transformation
San Jose, Calif., Sept. 21, 2020 –
Hewlett Packard Enterprise (NYSE: HPE) today announced it has completed the
acquisition of Silver Peak, an SD-WAN (Software-Defined Wide Area Network)
leader, in a transaction valued at $925 million. Silver Peak will become a
part of Aruba, a Hewlett Packard Enterprise company. 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.
Comprehensive WAN Portfolio to Meet Customer Needs
Enterprises are increasingly investing in SD-WAN technologies as legacy WAN
architectures incur relatively high costs and are cumbersome to operate.
Aruba and Silver Peak share a common vision and goal to provide simplicity,
scalability, and application-awareness at the edge. Aruba’s all-in-one SD-Branch
portfolio and remote worker solutions, combined with Silver Peak’s
self-driving SD-WAN and WAN optimization solutions, allow Aruba to better
address a wide set of customer requirements in order to capitalize on a
promising market opportunity.
“I look forward to leading the new WAN business unit within Aruba and
accelerating our customers’ edge-to-cloud transformation initiatives,” said
David Hughes, founder of Silver Peak and senior vice president of the WAN
business at Aruba. “Digital transformation, cloud-first IT architectures,
and the need to support a mobile work-from-anywhere workforce are driving
enterprises to rethink the network edge. The combination of Silver Peak and
Aruba will uniquely enable customers to realize the full transformational
promise of these IT megatrends.”
Transaction Details
Silver Peak is another example of HPE successfully accelerating its
strategy and enhancing its competitive position through acquisitions.
Bringing together Aruba and Silver Peak will strengthen HPE’s Intelligent
Edge business and drive significant revenue opportunities which will be
accretive to the Intelligent Edge segment revenue growth and gross margin.
We expect the transaction to be neutral to non-GAAP EPS in FY22[1].
HPE will discuss how the integration of Silver Peak will create value and
enhance growth and profitability at its Securities Analyst Meeting on
October 15, 2020.
About Hewlett Packard Enterprise
Hewlett Packard Enterprise is the global edge-to-cloud
platform-as-a-service company that helps organizations accelerate outcomes
by unlocking value from all of their data, everywhere. Built on decades of
reimagining the future and innovating to advance the way we live and work,
HPE delivers unique, open and intelligent technology solutions, with a
consistent experience across all clouds and edges, to help customers
develop new business models, engage in new ways, and increase operational
performance. For more information, visit: www.hpe.com.
Forward-looking Statements
This document contains forward-looking statements within the meaning of the
safe harbor provisions of the Private Securities Litigation Reform Act of
1995. Such statements involve risks, uncertainties and assumptions. If such
risks or uncertainties materialize or such assumptions prove incorrect, the
results of HPE and its consolidated subsidiaries could differ materially
from those expressed or implied by such forward-looking statements and
assumptions. All statements other than statements of historical fact are
statements that could be deemed forward-looking statements, including, but
not limited to, any statements regarding the expected benefits and costs of
the transaction contemplated by this document, including enhanced
opportunities for growth, the delivery of customer benefits and the
realization of synergies and other economic benefits; projections of
revenue, expenses, net earnings, operating profit, cash flows, or other
financial items; any statements concerning the expected development,
performance, market share or competitive performance relating to products
or services; any statements regarding current or future macroeconomic
trends or events and the impact of those trends and events on HPE and its
financial performance; any statements of expectation or belief; and any
statements of assumptions underlying any of the foregoing. Risks,
uncertainties and assumptions include the possibility that expected
benefits may not materialize as expected; that the parties are unable to
successfully implement integration strategies; and other risks that are
described in HPE’s SEC reports, including but not limited to the risks
described in HPE’s Annual Report on Form 10-K for its fiscal year ended
October 31, 2019 and subsequent Quarterly Reports on Form 10-Q. HPE assumes
no obligation and does not intend to update these forward-looking
statements.
[1] On a GAAP EPS basis FY 22 is marginally dilutive.
Aruba
Jennifer Miu
[email protected]
HPE
Stefanie Notaney
[email protected]
Investor contact
Sonalee Parekh
[email protected]