Hewlett Packard, SimpliVity in possible talks of acquisition deal
It has recently been reported that Hewlett Packard (HP) may be in possible talks to acquire SimpliVity, according to CRN. Although sources have reported that the talks are taking place, the status of the deal is not known and both companies declined to comment to CRN.
SimpliVity, a company based in Massachusetts, creates infrastructure technology that helps to power data centers, ranging from small to large. The company's OmniStack and OmniCube technologies may be of interest to HP, as they have a portfolio of infrastructure products already and could stand to benefit from this addition.
However, CRN explains that SimpliVity could add to HP's offerings. With this acquisition strategy, the addition of the functionality from SimpliVity's technology could strengthen HP's portfolio and give the company a stronger position against other competitors in the market.
"Some of the things SimpliVity is doing around compression and deduplication are very special," Jed Ayres, chief marketing officer at MCPc, a Cleveland-based HP partner, told CRN. "If HP can build that into some of the things they're doing with 3PAR, that could give them a significant advantage."
SimpliVity's technology is of interest because it could add to HP's offerings in backup and recovery, ZDNet notes.
As we have discussed previously on this blog, an acquisition can be a great opportunity for a company to obtain technology that will help it bolster its offerings. If HP decides to acquire SimpliVity, it could position itself to offer something that other competitors can't.
There are many considerations to account for with an acquisition deal. From negotiating the best offer to determining an effective acquisition strategy, an M&A advisor can provide companies with the guidance necessary for success.