Nimble Storage Inc (NMBL) Stock Flies on $1 Billion HPE Deal

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Nimble Storage Inc (NYSE:NMBL) stock was up on Tuesday following news that Hewlett Packard Enterprise Co (NYSE:HPE) is planning to acquire it.

Nimble Storage Inc (NMBL) Stock Flies on $1 Billion HPE DealHewlett Packard Enterprise Co will be acquiring Nimble Storage Inc for $1 billion. This will have it offering $12.50 per share for the company. The deal will also include NMBL’s pay out of unvested equity awards, which are valued at $200 million.

The deal will have a subsidiary of Hewlett Packard Enterprise Co making the tender offer for Nimble Storage Inc’s shares. HPE will need to acquire a majority of outstanding NMBL shares before it can complete the deal. Shareholders representing 21% of outstanding shares have already agreed to take part in the tender offer.

If Hewlett Packard Enterprise Co completes the tender offer for Nimble Storage Inc, it will then merge the company with one of its subsidiaries. This will have it becoming a wholly-owned subsidiary of HPE. It will also result in the delisting of NMBL stock from the New York Stock Exchange.

Hewlett Packard Enterprise Co says that it expects the acquisition of Nimble Storage Inc to be accretive to its earnings starting in the first full fiscal year after the deal is completed. It notes that once the deal is complete, it will be able to offer flash storage solutions for entry, midrange and high-end customers.

Nimble Storage Inc also released its earnings report for its fiscal fourth quarter of 2017 today. However, it won’t be holding a conference call or offering guidance for fiscal 2018. This is due to the announcement of the deal with Hewlett Packard Enterprise Co.

NMBL stock was up 45% as of Tuesday morning and is up 57% year-to-date.


Article printed from InvestorPlace Media, https://investorplace.com/2017/03/nimble-storage-inc-hewlett-packard-enterprise-co-nmbl-hpe/.

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