NEW YORK (TheStreet) -- Shares of Silicon Graphics Int'l (SGI) were jumping 28.76% to $7.70 on heavy trading volume midday Friday after the company agreed to be acquired by Hewlett Packard Enterprise (HPE) in a deal worth $275 million.
After yesterday's closing bell, HPE said it would buy the Fremont, CA-based computer hardware and software company for $7.75 per share.
The deal is expected to close in HPE's 2017 fiscal first quarter, pending regulatory approval.
Oppenheimer said it has mixed views on the acquisition overall.
"While not a high-quality acquisition from a growth perspective, it does bring in-house an OEM supplier, further strengthening HPE's position as a leading enterprise IT hardware vendor and possibly offering a gross margin benefit," the firm wrote in an analyst note.
About 15.71 million of Silicon Graphics' shares were traded so far today vs. its average volume of 504,382 shares per day.
Shares of HPE are higher in mid-afternoon trading today.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on Silicon Graphics stock.
The company's weaknesses can be seen in multiple areas, such as its poor profit margins and generally high debt management risk.
Recently, 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.
You can view the full analysis from the report here: SGI