Updated from 5:14 p.m. EDT
NEW YORK (TheStreet) -- Shares of Silicon Graphics Int'l (SGI) were advancing 27.93% to $7.65 in after-hours trading on Thursday after Hewlett Packard Enterprise (HPE) announced it would purchase the Fremont, CA-based computer hardware and software manufacturer in a deal worth $275 million, or $7.75 per share.
The company expects the deal to close in the first quarter of Hewlett Packard's fiscal 2017 year, pending regulatory approval.
Additionally, Silicon Graphics reported higher-than-expected 2016 fourth quarter results after today's market close.
The company reported earnings of 8 cents per share, surpassing analysts' projected 1 cent per share and revenue of $123 million, beating consensus estimates of $120.69 million.
In the year-ago period, Silicon Graphics posted a loss of 12 cents per share and revenues of $152.9 million.
Hewlett Packard, which spun off from HP (HPQ) last November, said the purchase would help boost its capabilities in big data analytics.
The acquisition will have a neutral impact on earnings in the first full year after the deal is closed, Hewlett Packard said in a statement.
Shares of Hewlett Packard closed up on Thursday.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate SILICON GRAPHICS INTL CORP as a Sell with a ratings score of D. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its poor profit margins and generally high debt management risk.
You can view the full analysis from the report here: SGI