{"id":20366,"date":"2022-12-01T23:14:26","date_gmt":"2022-12-01T23:14:26","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2022\/12\/01\/report-hpe-has-expressed-interest-in-acquiring-nutanix\/"},"modified":"2022-12-01T23:14:26","modified_gmt":"2022-12-01T23:14:26","slug":"report-hpe-has-expressed-interest-in-acquiring-nutanix","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2022\/12\/01\/report-hpe-has-expressed-interest-in-acquiring-nutanix\/","title":{"rendered":"Report: HPE has expressed interest in acquiring Nutanix"},"content":{"rendered":"

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Hewlett Packard Enterprise Co. has expressed interest in acquiring Nutanix Inc., Bloomberg <\/span>reported<\/span><\/a> today.<\/span><\/p>\n

Shares of Nutanix, which makes software for managing information technology infrastructure, jumped more than 8% on the news.\u00a0<\/span><\/p>\n

HPE\u2019s acquisition talks with Nutanix have reportedly been \u201con and off.\u201d Additionally, today\u2019s report stated that it\u2019s unclear whether HPE and Nutanix will succeed in agreeing upon an acquisition price.<\/span><\/p>\n

Nutanix has a market capitalization of more than $7 billion, which suggests that any potential acquisition would carry a significant price tag. And Dave Vellante, chief analyst at SiliconANGLE sister market research firm Wikibon, said<\/a> that \u201c<\/span>if HPE is going to drop $7 billion-plus there might be some other considerations in terms of where to invest.\u201d<\/p>\n

According to today\u2019s report, Nutanix may eventually decide against a sale and instead opt to continue operating as an independent company. Alternatively, it\u2019s believed that Nutanix may seek a bid from another potential buyer besides HPE.<\/span><\/p>\n

The development comes less than two months after reports\u00a0<\/span>first emerged<\/span><\/a> that Nutanix is considering a sale. At the time, it was reported that a sale to a private equity firm may also be on the table.\u00a0<\/span><\/p>\n

San Jose, California-based Nutanix sells software products that organizations use to manage their IT infrastructure. The company\u2019s software can run on both cloud and on-premises infrastructure. In on-premises environments, Nutanix software is commonly installed on hyperconverged appliances, which package compute, storage and network equipment into a single chassis to ease maintenance.<\/span><\/p>\n

Besides the infrastructure management market, Nutanix also competes in a number of adjacent markets. It provides a database management service called Era and offers multiple cybersecurity features. Additionally, Nutanix sells a Kubernetes distribution that includes automation tools and other capabilities not included in the open-source version.\u00a0<\/span><\/p>\n

Acquiring Nutanix could enable HPE to expand the software capabilities of its GreenLake platform. GreenLake, HPE\u2019s flagship offering, enables customers to purchase on-premises data center infrastructure from the company on a pay-as-you-go basis. HPE also installs and manages the infrastructure on customers\u2019 behalf.<\/span><\/p>\n

HPE\u2019s revenue grew<\/a> 7% year-over-year, to $7.9 billion, last quarter. The company easily topped analysts\u2019 consensus sales estimate of $7.4 billion. HPE\u2019s Intelligent Edge revenue segment, which includes a part of the revenue it generates from the GreenLake platform, increased sales by 18% year-over-year.\u00a0<\/span><\/p>\n

Nutanix also topped analyst expectations during its most recent quarter<\/a>. The company significantly narrowed its net loss to $99.1 million from $419.9 million a year earlier and grew revenues by 15%, to $433.6 million, during the same time frame. Nutanix added 530 new customers in the quarter.\u00a0<\/span><\/p>\n

In 2019, HPE <\/span>partnered<\/span><\/a> with Nutanix to make core components of the latter company\u2019s software portfolio available through its GreenLake infrastructure platform. Last year, the companies <\/span>expanded<\/span><\/a> the partnership to include Nutanix\u2019s Era database management software. HPE combined Era with its popular ProLiant series of servers and made the bundle available as a service for GreenLake customers.\u00a0<\/span><\/p>\n

Photo:\u00a0Nutanix<\/a><\/h5>\n
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