Hewlett Packard Enterprise (HPE) is set to acquire SGI for a price of $275 million to strengthen its position in the big data analytics and high-performance computing (HPC) markets.
Founded in 1981, SGI or formerly known as Silicon Graphics Inc. manufactures hardware and software for high-performance computers. It has 1,100 employees globally and gained $533 million in 2016, according to a press release. Its HPC and big data products primarily focus on scientific, technical, and government verticals.
Antonio Neri, HPE’s executive vice president and general manager, said in a statement that SGI’s big data analytics and high-performance computing solutions will complement HPE’s established data center solutions.
The deal also makes sense for SGI as it has struggled in recent years. After gaining $767 million in revenues for the 2013 fiscal year, the company’s sales have since plummeted in the following years.
HPE and SGI’s agreement is expected to be completed in the first quarter of 2017.
(Photo Source: blog.sgi.com)