Palo Alto, Calif.-based Hewlett Packard Enterprise (NYSE: HPE) said it agreed to acquire San Jose, Calif.-based Nimble Storage (NTSE: NMBL), a provider of predictive flash storage technology, for $12.50 per share in cash, representing a purchase price of $1 billion. In addition, HPE will assume or pay out Nimble’s unvested equity awards, with a value of approximately $200 million at closing.

Nimble’s predictive flash offerings for the entry to midrange segments are complementary to HPE’s scalable midrange to high-end 3PAR solutions and affordable MSA products. The deal will enable HPE to deliver a full range of flash storage solutions.

Nimble was founded in 2007 and has approximately 1,300 employees worldwide. The company generated revenue of $402 million in its most recent fiscal year, up 25 percent year over year. Nimble has recently introduced multicloud storage services that combine the best of on-premises and public cloud storage capabilities for Hybrid IT deployments.

HPE plans to incorporate Nimble’s InfoSight Predictive Analytics platform across its storage portfolio, which will enable a stronger, simplified support experience for HPE customers. For example, InfoSight automatically detects 90 percent of all issues within a customer’s infrastructure, and resolves over 85 percent of them.  This dramatically reduces the amount of time and effort a customer’s IT team spends on support activities.

“Nimble Storage’s portfolio complements and strengthens our current 3PAR products in the high-growth flash storage market and will help us deliver on our vision of making Hybrid IT simple for our customers,” said Meg Whitman, President and CEO, Hewlett Packard Enterprise. “And, this acquisition is exactly aligned with the strategy and capital allocation approach we’ve laid out. We remain focused on high-growth and higher-margin segments of the market.”

Flash storage is a fast-growing market and an increasingly important element of today’s hybrid IT environment. The overall flash market was estimated to be approximately $15 billion in 2016 and is expected to be nearly $20 billion by 2020, with the all-flash segment growing at a nearly 17 percent compound annual growth rate.

“Over 10,000 enterprises are using Nimble Storage because our Predictive Cloud Platform is reliably fast, radically simple, and cloud ready,” said Suresh Vasudevan, CEO at Nimble Storage. “This acquisition validates our technology leadership in flash and in the use of cloud-based predictive analytics.  We’re confident that by combining Nimble Storage’s technology leadership with HPE’s global distribution strength, strong brand, and enterprise relationships, we’re creating expansion opportunities for the combined company.”

Following the closing, which is expected to be completed in April subject to regulatory and shareholders’ approval and customary conditions, Nimble shares will be delisted from the New York Stock Exchange. The deal is expected to be accretive to HPE earnings in the first full fiscal year following the close.

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