Hewlett Packard Enterprise acquires data management firm SimpliVity for USD 650 million

Hewlett Packard Enterprise on Wednesday acquired business data management firm SimpliVity for USD 650 million in cash.

Founded in 2009, the Massachusetts-based Simplivity sells hyper-converged systems that combine computing, storage and networking. HPE said the market for such systems was estimated t USD 2.4 billion last year and was expected to grow to early USD 6 billion by the year 2020.

"This transaction expands HPE's software-defined capability and fits squarely within our strategy to make hybrid IT simple for customers," HPE chief executive Meg hitman said in a statement.

HPE, based in Palo Alto, California, was the result of the November 2015 breakup of computing giant Hewlett-Packard.

The group was split between its enterprise unit, HPE, and the personal computer and printer business HP Inc. that became household name but faced increasingly fierce competition.

Whitman has dismantled some of the company as the world increasingly turns to mobile devices and cloud-based computing. Nearly two years ago SimpliVity announced it had raised SD 175 million at a valuation of more than a billion dollars.

The price paid by HPE would indicate that the company had left the unicorn herd.