Hewlett Packard Enterprise Co. (NYSE: HPE) has agreed to buy software company SimpliVity for $650 million in cash. The target is backed by Accel Partners, Charles River Ventures, DFJ, Kleiner Perkins Caufield & Byers, Meritech Capital Partners and Waypoint Capital.

SimpliVity, founded in 2009 and based in Westborough, Massachusetts, provides hyperconverged infrastructure software. Hyperconverged technology combines storage and networks into a pre-configured system that is managed by "user-friendly" software and usually doesn’t require a lot of IT support. HP expects the market to be valued at almost $6 billion by 2020. One of SimpliVity’s competitors, Nutanix Inc. (Nasdaq: NTNX), went public in 2016.

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