Menu
HPE to buy supercomputer maker in US$1.3B deal

HPE to buy supercomputer maker in US$1.3B deal

HPE is set to acquire s​upercomputer manufacturer Cray in a deal valued at about US$1.3 billion

HPE is set to acquire supercomputer manufacturer Cray in a deal valued at about US$1.3 billion and set to increase HPE's  footprint in federal business and academia, and sell supercomputing products to its commercial clients.

The US$35 per share value represents a premium of 17.4 per cent to Cray's last close.

The deal, expected to close by the first quarter of HPE's fiscal year 2020, will add to its adjusted operating profit in the first full year after closing.

As part of the deal, HPE expects to incur one-time integration costs that will be absorbed within its fiscal year 2020 free cash flow outlook of US$1.9 billion to US$2.1 billion that remains unchanged.

Seattle-headquartered Cray has US-based manufacturing operations and about 1,300 employees worldwide. It earned US$456 million in revenue in its last fiscal year.

Cray's supercomputing systems can handle massive data sets, converged modelling, simulation, artificial intelligence, and analytics workloads.

(Reporting by Arjun Panchadar in Bengaluru; Editing by Shounak Dasgupta)


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags acquisitionCrayHPE

Featured

Slideshows

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA

Reseller News has honoured the leading female front runners of the New Zealand ICT industry at the 2019 Women in ICT Awards (WIICTA) in Auckland. The awards recognised standout individuals across six categories, spanning Entrepreneur, Rising Star, Shining Star, Community, Technical and Achievement. Photos by Gino Demeer.

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA
Reseller News kicks off awards season in 2019 with Judges' Lunch

Reseller News kicks off awards season in 2019 with Judges' Lunch

The 2019 Reseller News Innovation Awards has kicked off with the Judges Lunch in Auckland with 70 judges in the voting panel. The awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors. Photos by Christine Wong.

Reseller News kicks off awards season in 2019 with Judges' Lunch
Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomed 2018 inductees - Chris Simpson, Kendra Ross and Phill Patton - to the third running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing landscape of the technology industry in New Zealand, while outlining ways to attract a new breed of players to the ecosystem. Photos by Gino Demeer.

Reseller News welcomes industry figures for 2019 Hall of Fame lunch
Show Comments