What happened

Shares of Nimble Storage (NYSE:NMBL) have skyrocketed today, up by 45% as of 11 a.m. EST, after the company reported fourth-quarter earnings, but more importantly also announced that it was being acquired by Hewlett Packard Enterprise (NYSE:HPE).

So what

Revenue in the fourth quarter rose 30% to $117 million, which translated into a non-GAAP net loss of $10.9 million, or $0.12 per share. Both figures beat consensus estimates, which called for $113.5 million in sales and an adjusted net loss of $0.14 per share.

HP Enterprise headquarters

Image source: HP Enterprise.

That's all fine and dandy, but the real news today is that HP Enterprise will acquire Nimble for $12.50 per share, valuing the smaller company at approximately $1 billion.

Now what

In a blog post announcing the deal, HP Enterprise exec Antonio Neri noted that the "biggest technology transition in storage today is the move from spinning disk media to flash." The acquisition will accelerate HP Enterprise's flash storage roadmap and allow it to better address the needs of enterprise customers with flash-optimized offerings for hybrid IT. Nimble's predictive analytics technology will also bolster HPE's flash storage portfolio and deliver a better customer experience, especially once combined with prior acquisitions like the 2010 purchase of 3PAR.

Evan Niu, CFA has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.