Hewlett Packard Enterprise Co. has announced a $1.4 billion deal to acquire supercomputer maker Cray Inc. in an effort to enhance its position in high-end computing. The agreement will see Cray investors receiving $35 per share in cash, representing a 17% premium over the previous closing price. This acquisition marks HP Enterprise’s largest deal since becoming a public company in 2015, surpassing the acquisition of Nimble Storage Inc. for over $1 billion two years prior.
The move is seen as a strategic one for HP Enterprise to bolster its competitiveness against rivals like IBM. The company has been focused on restructuring and downsizing since its separation from Hewlett-Packard Co., with previous initiatives including a split and merger with Computer Sciences Corp. and divestment of software assets to Micro Focus International Plc for $8.8 billion.
Despite some past losses, Cray has a strong legacy as a pioneer in supercomputing, with its founder Seymour Cray being known as the “father of supercomputing.” The company recently secured a $600 million agreement with the U.S. Department of Energy’s Oak Ridge National Laboratory for a new research system focused on artificial intelligence, climate research, genomics, and physics.
HP Enterprise has also been investing in emerging technologies, allocating $4 billion through 2022 for initiatives in artificial intelligence, Internet of Things, and distributed computing. CEO Antonio Neri has expressed optimism about the returns from these investments in the near future.
Cray’s high-performance computing systems have been utilized by various institutions and organizations, including the University of Notre Dame, Pittsburgh Supercomputing Center, and BASF SE. The company also secured a $57 million contract last year with the U.S. Department of Defense for supercomputers used in helicopter design and weather forecasting.
Overall, the acquisition of Cray by HP Enterprise marks a significant move in the evolving landscape of high-end computing, with the potential to strengthen the company’s market position and technological capabilities in the years ahead.
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https://www.datacenterknowledge.com/supercomputers/hpe-agrees-to-buy-supercomputer-maker-cray-for-1-4-billion
