Hewlett Packard Enterprise has expressed takeover interest in cloud computing company Nutanix, according to people familiar with the matter.
HPE has held talks with Nutanix in recent months, said the people, who asked to not be identified because the matter isn’t public. The talks between the companies have been on and off and it’s unclear whether they will be able to reach an agreement over price, they added. Nutanix could also opt to stay independent or another potential buyer could emerge, the people added.
Nutanix rose 4.1% to US$28.26 in New York trading on Wednesday, giving the company a market value of about $6.5-billion. HPE rose 8.5% to $16.78, for a market value of more than $21-billion.
A representative for HPE declined to comment. A spokesman for Nutanix said the company didn’t comment on rumours and speculation.
San Jose, California-based Nutanix sells cloud software and services to companies, according to its website. On Wednesday, it reported revenue of about $434-million for the first quarter of its fiscal year, topping estimates by 15%.
HPE this week projected revenue for the current quarter that beat analyst expectations, suggesting corporations are continuing to upgrade their technology infrastructure in an uncertain economy.
The Wall Street Journal reported last month that Nutanix was exploring a sale after getting takeover interest. — Liana Baker, Katie Roof and Scott Deveau, (c) 2022 Bloomberg LP