HPE Completes Acquisition of Supercomputing Company Cray

HPE Completes Acquisition of Supercomputing Company Cray
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HPE has completed the acquisition of supercomputing leader Cray, earlier than the original target date. They paid $35 per share, in a transaction valued at approximately $1.4 billion, net of cash.

HPC is a key component of HPE’s vision and growth strategy as it provides the backbone to process, analyze and extract insights from massive amounts of data. The combination of HPE and Cray is expected to deliver significant customer benefits and future offerings.

“Bringing together Cray and HPE establishes the most comprehensive end-to-end portfolio across compute, storage, software and services in the fast-growing high performance computing and artificial intelligence market segments,“ said Phil Davis, president, Hybrid IT, Hewlett Packard Enterprise. “But, the real value is what we can accomplish together as one team. We are united in our vision to be a global leader in high performance computing. By combining the teams’ deep expertise and R&D engines, we are better positioned to help our customers solve their most data-intensive challenges both today and well into the future.“

As part of the acquisition, Cray president and CEO Peter Ungaro, will join HPE as head of the HPC and AI business unit in Hybrid IT. “For almost 50 years, Cray has been dedicated to being a leader in supercomputing in support of our customers’ most important missions,“ said Ungaro. “Cray and HPE have a shared vision for the new exascale era, and by joining forces, we’re offering the promise of Cray’s technology to an expanded market.“

Bringing together HPE and Cray enables an enhanced financial profile for the combined company. The acquisition is expected to be accretive to HPE non-GAAP operating profit and earnings in HPE’s fiscal year 2020.