Hewlett Packard Sees Acquisitions As Integral to Growth
California-based Hewlett Packard Enterprise has been busy bolstering its portfolio to stay ahead in cloud computing, with even more acquisitions on the horizon.
This year, the company revealed purchases worth more than $1.5 billion and is looking to boost demand for server and storage products in order to stay ahead of competitors, such as Dell and Amazon.com.
These recent acquisitions come after CEO, Meg Whitman, split the computer and printer business and sold off software units in multibillion-dollar deals, giving the company a clear direction for the future.
During the company’s Discover Conference, Whitman commented: “Back when we were an enormous company with six or seven operating divisions, there were a lot of mouths to feed. Printing wanted to make acquisitions. PCs wanted to make acquisitions. Software wanted to make acquisitions. Now, we have a much more focused strategy.”
Hewlett Packard posted revenues of $9.9 billion in the quarter that ended April 30, lower than the $10.09 billion projected by analysts. This further cements the company’s acquisition plans as a way to boost revenues in the future.
In April, the company purchased online data storage specialist, Nimble Storage, in a deal worth approximately $1 billion. This deal followed the purchases of IT service management company SimpliVity, and Niara, which specialises in security analytics and network forensics, earlier this year.
At the Discover conference, Whitman made assurances that when it comes to acquisitions, the company would stick to core business activities, including servers, storage and networking, while aiming to keep its customers up-to-date with the latest advances in connected devices and hybrid computing.
Stay tuned to our blog for industry M&A analysis and remember to get in touch with our experienced team with any questions you have about the M&A process and how Benchmark International can help you.