Hewlett Packard Enterprise (HPE) announced it has completed the acquisition of Silver Peak, an SD-WAN (Software-Defined Wide Area Network) leader, in a transaction valued at $925 million.
Silver Peak will become a part of Aruba, a Hewlett Packard Enterprise company. Silver Peak founder and CEO David Hughes will join HPE as the senior vice president of the WAN business within Aruba.
The acquisition will strengthen Aruba ESP (Edge Services Platform), helping to advance enterprise cloud transformation with a comprehensive edge-to-cloud networking solution covering all aspects of wired, wireless local area networking (LAN) and wide area networking (WAN).
“WAN transformation is a key component of HPE’s Intelligent Edge and edge-to-cloud vision and growth strategy,” said Antonio Neri, president and CEO of HPE. “Armed with a SD-WAN portfolio with the addition of Silver Peak, we will accelerate the delivery of a distributed cloud model and cloud experience for all apps and data wherever they live.”
“By combining Silver Peak’s advanced SD-WAN technology with Aruba’s SD-Branch and remote worker solutions, customers can simplify branch office and WAN deployments to empower remote workforces, enable cloud-connected distributed enterprises, and transform business operations without compromise,” Keerti Melkote, president of Intelligent Edge for Hewlett Packard Enterprise and founder of Aruba Networks, said.
Aruba’s SD-Branch portfolio and remote worker solutions, combined with Silver Peak’s self-driving SD-WAN and WAN optimization solutions, allow Aruba to better address a wide set of customer requirements in order to capitalize on a promising market opportunity.
HPE will discuss how the integration of Silver Peak will create value and enhance growth and profitability at its Securities Analyst Meeting on October 15, 2020.
Bringing together Aruba and Silver Peak will result in an enhanced financial profile for HPE’s Intelligent Edge business. HPE expects the combination to drive significant revenue opportunities and to be accretive to Intelligent Edge segment revenue growth and gross margin.
In 2018 HPE announced its strategic plan to invest $4 billion in Intelligent Edge over four years
The SD-WAN market is experiencing significant growth. That is expected to continue, with 650 Group forecasting that the market for SD-WAN will grow from $2.3 billion in 2020 to $4.9 billion in 2024, a +20.5 percent CAGR.
Silver Peak is a leader in the SD-WAN market with more than 1,500 production SD-WAN customers. The company helps enterprises and service providers quickly migrate to secure enterprise-grade SD-WAN connectivity, while dramatically improving application performance and lowering connectivity costs.
Silver Peak is also one of two Leaders recognized in the Gartner Magic Quadrant for WAN Edge Infrastructure, 2019 which complements Aruba’s leadership in wired and wireless networking.