- General
- May 17, 2019
- 5 minutes read
HPE To Acquire Cray For $1.3 Billion
HPE CEO Antonio Neri image: HPE Hewlett Packard Enterprise (HPE) has agreed to acquire Seattle based publicly traded supercomputer manufacturer…
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| HPE CEO Antonio Neri
image: HPE
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Hewlett Packard Enterprise (HPE) has agreed to acquire Seattle based publicly traded supercomputer manufacturer Cray for $35 per share, amounting to a roughly $1.3 billion deal. HPE is paying a 17.4% premium to Cray’s Thursday closing stock price of $29.81. The acquisition is subject to regulatory approvals and is expected to close in HPE’s fiscal year 2020.
Cray is exiting to HP after its founding — as Cray Research — way back in 1972. The Seattle based company had $456 million revenues in its most recent year and currently employs 1,300 persons worldwide. The company counts a leadership position among the top 100 supercomputer installations globally. Cray — notably — was recently part of a $600 million ‘Exascale’ supercomputer contract for the U.S. Department of Energy’s Oak Ridge National Laboratory.
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| Aurora, a supercomputer being developed by Intel and Cray for the U.S. Department of Energy
image: Argonne National Laboratory
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The company was also part of a contract along with Intel to build a $500 million supercomputer for the U.S. Department of Energy’s Argonne National Laboratory. Its part of the contract was valued at more than $100 million.
“This is an amazing opportunity to bring together Cray’s leading-edge technology and HPE’s wide reach and deep product portfolio, providing customers of all sizes with integrated solutions and unique supercomputing technology to address the full spectrum of their data-intensive needs,” Cray CEO Peter Ungaro said in a statement.
“HPE and Cray share a commitment to customer-centric innovation and a vision to create the global leader for the future of high performance computing and AI. On behalf of the Cray Board of Directors, we are pleased to have reached an agreement that we believe maximizes value and are excited for the opportunities that this unique combination will create for both our employees and our customers.” He said.
