Nutanix shares spike on report of HPE interest

But one Nutanix partner says any deal between the duo would be a 'huge mistake'

clock • 2 min read
Nutanix shares spike on report of HPE interest

Nutanix shares were trading up five percent to $29.75 after a Bloomberg report that Hewlett Packard Enterprise (HPE) had expressed takeover interest and even held discussions with Nutanix in recent months.

Bloomberg, quoting sources familiar with the matter, reported that the "talks between the companies have been on and off and it's unclear whether they will be able to reach an agreement over price".

Nutanix, whose current market cap stands at $6.94bn, could also opt to stay independent or another potential buyer could emerge, Bloomberg reported. HPE's current market cap is $21.5bn.

An HPE spokesperson said the company does not comment on rumours or speculation. A Nutanix spokesperson said the company also doesn't respond to market speculation.

The Wall Street Journal reported a month ago that Nutanix was actively shopping the company to potential buyers.

Spring, Texas-based edge-to-cloud tech giant HPE and San Jose, Calif.-based hyperconverged infrastructure software superstar Nutanix have had a long-standing partnership that began three years ago with a global strategic partnership that integrated Nutanix software on HPE servers. That deal resulted in Nutanix's Enterprise Cloud OS software being made available through the HPE GreenLake cloud pay-per-use service.

The HPE-Nutanix deal also resulted in the two companies creating integrated appliances that tie Nutanix software to HPE ProLiant and Apollo servers.

"I can certainly see the appeal of a potential deal for Nutanix, but the question I would ask is what would HPE do with Simplivity which competes with Nutanix," said a top executive for a solution provider who did not want to be identified.

One longtime Nutanix partner said any deal between the two companies would be a "huge mistake."

"I've been a part of acquisitions by HPE before," said Tim Joyce, president of Roundstone Solutions, a Nutanix partner in California. "HPE is where innovative companies go to die. Look what they did with SimpliVity. Why would Nutanix be any different?"

You may also like
Cisco CEO: 'A lot of noise' on HPE-Juniper deal but 'it's a little early'

Vendor

Cisco CEO Chuck Robbins weighed in on the pending HPE-Juniper Networks megadeal this week, saying it was still a little soon to see how the deal would impact the networking industry

clock 19 February 2024 • 3 min read
HPE hires Dell Technologies veteran to lead storage business

Vendor

The changing of the storage guard at HPE comes as the edge-to-cloud services provider moves to drive market-share gains against the likes of Dell Technologies, Pure Storage and NetApp.

clock 30 January 2024 • 3 min read
HPE names compute business veteran Neil MacDonald to head up AI, high performance compute charge

Vendor

‘The relationship that Neil MacDonald has with Nvidia is going to help HPE continue to drive AI opportunities going forward,’ said C.R. Howdyshell, CEO of Advizex, a top HPE partner.

clock 24 January 2024 • 4 min read

Sign up to our newsletter

The best news, stories, features and photos from the day in one perfectly formed email.

More on Vendor

Zoom reports revenue growth and strong profitability in Q4 and full-year results

Zoom reports revenue growth and strong profitability in Q4 and full-year results

Total revenue was up 2.6 per cent in Q4 and 3.1 for the full fiscal year

Andrea Gaini
clock 27 February 2024 • 1 min read
Cloud backup vendor Keepit opens UK headquarters

Cloud backup vendor Keepit opens UK headquarters

Danish vendor has opened a London office to get closer to UK partners and customers

Andrea Gaini
clock 27 February 2024 • 2 min read
KKR nears $3.8bn deal to buy Broadcom's VMware end user compute business: Report

KKR nears $3.8bn deal to buy Broadcom's VMware end user compute business: Report

Broadcom is seeking to unload $1bn EUC business post-VMware acquisition

Steven Burke
clock 26 February 2024 • 2 min read

Highlights

Staff & Salaries 2022

Staff & Salaries 2022

A snapshot of pay and headcount trends in the UK channel

Doug Woodburn
clock 09 March 2022 • 1 min read
Midwich CEO on Nimans acquisition, 2021 results and return to pre-pandemic levels

Midwich CEO on Nimans acquisition, 2021 results and return to pre-pandemic levels

Stephen Fenby talks to CRN after Midwich’s 2021 results in which profitability exceeded pre-pandemic levels

Josh Budd
clock 08 March 2022 • 3 min read
4 more vendors suspend sales in Russia following Ukraine invasion

4 more vendors suspend sales in Russia following Ukraine invasion

IBM and Microsoft are among a number of vendors which have also announced that they will halt sales in Russia following the invasion of Ukraine.

clock 08 March 2022 • 3 min read