Building A Better HPE
While Hewlett Packard Enterprise's planned sale of its software division to private equity firm Thoma Bravo and its decision to spin off and merge its $20 billion Enterprise Services business with systems integration giant CSC give the company a chance to concentrate on its core business, there could be plans afoot to look for ways to expand the core.
Oppenheimer & Co., a New York-based investment firm, last week in a report titled "Hewlett Packard Enterprise Evaluating Potential M&A Targets" said that HPE is likely to take advantage of a robust post-spinoff cash balance to make strategic acquisitions.
"In the past, HPE has maintained a conservative view on M&A, looking for complementary technologies that can leverage its channel to drive growth with a 'sweet spot' size not exceeding $2B-$3B. We believe HPE will have to increasingly 'stretch' these limits given rising competitive pressures and see hyper-converged, data networking, SD-WAN, and storage as areas of focus," Oppenheimer wrote.
Here's a look at 11 companies Oppenheimer thinks could be acquisition targets for HPE.