HPE Acquisition of Silver Peak to Accelerate Edge-to-Cloud Strategy

By Chantal Polsonetti

Category:
Acquisition or Partnership

Hewlett Packard Enterprise (HPE) announced that it has entered into a definitive agreement to acquire Silver Peak, an SD-WAN (Software-Defined Wide Area Network) supplier in a transaction valued at $925 million.  Silver Peak will be combined with HPE’s Aruba business unit and will extend Aruba’s technology in the large SD-WAN space.

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.

Silver Peak has more than 1,500 production SD-WAN customers around the world.  The company helps enterprises and service providers migrate to secure enterprise-grade SD-WAN connectivity, while improving application performance and lowering connectivity costs.  Powered by Silver Peak’s SD-WAN edge platform, customers can achieve dedicated WAN-like performance while running all cloud applications and services via broadband access.  Silver Peak also enables freedom of choice to leverage best-in-class technologies from a broad range of ecosystem partners, particularly those focused on security.

The companies expect the combination to create opportunities for significant economic upside through enhanced growth and profitability by:

  • Providing a superior value proposition to joint customers through integrated offerings that addresses a greater set of customer requirements
  • Targeting an expanded TAM across SD-WAN and SD-Branch implementations
  • Accelerating WAN transformations across HPE and Aruba’s broad global customer base

 

HPE expects the transaction to be neutral to no on-GAAP EPS in FY221.

The transaction is expected to close in the fourth quarter of HPE’s fiscal year 2020, subject to regulatory approvals and other customary closing conditions.

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