HP Enterprise to buy supercomputer maker Cray in $1.3bn deal
Hewlett Packard Enterprise has agreed to buy supercomputer maker Cray in a deal valued at around $1.3bn.
Under the terms of the deal, which is expected to be accretive to HPE's non-GAAP operating profit and earnings in the first full year after close, HPE will pay $35 per share in cash.
HPE's president and chief executive, Antonio Neri, said: "Answers to some of society’s most pressing challenges are buried in massive amounts of data. Only by processing and analysing this data will we be able to unlock the answers to critical challenges across medicine, climate change, space and more. Cray is a global technology leader in supercomputing and shares our deep commitment to innovation.
"By combining our world-class teams and technology, we will have the opportunity to drive the next generation of high performance computing and play an important part in advancing the way people live and work."
Cray's president and CEO, Peter Ungaro, said that by combining the two businesses, they would be able to provide customers of all sizes with integrated solutions and unique supercomputing technology "to address the full spectrum of their data-intensive needs".
Founded in 1972 and headquartered in Seattle, Cray generated revenue of $456m in its most recent fiscal year, which was a 16% increase on the prior year.