Hewlett Packard Enterprise has signed a definitive agreement to acquire SGI for $7.75 per share in cash, a transaction valued at approximately $275 million. 

SGI products and services are used for high-performance computing (HPC) and big data analytics. The company has approximately 1,100 employees worldwide, and had revenues of $533 million in fiscal 2016. 

The combined HPE and SGI portfolio, including a services capability, will support private and public sector customers seeking larger supercomputer installations, including U.S. federal agencies as well enterprises looking to leverage high-performance computing, said HPE in a statement.

The transaction is expected to close in the first quarter of HPE’s fiscal year 2017, subject to regulatory approvals and other customary closing conditions.

You can find a blog post by Antonio Neri, executive vice president and general manager, Enterprise Group of HPE talking about the acquisition here. 

[Image courtesy: SGI]