5/17, 2:06 PM (Source: TeleTrader)
more TeleTrader news

HPE to pay $1.3B in cash for Cray

Hewlett Packard Enterprise Co. said on Friday that it would push into the next generation of high-performance computing, or HPC, by the acquisition of Cray Inc. for $35 per share or 17.4% above yesterday's closing price. The target entity based in Seattle spiked 16.64% in premarket trade, after which it was halted.

When the cash on hand at the supercomputer maker is subtracted, the transaction comes in at $1.3 billion, according to the announcement. The information technology giant headquartered in San Jose expressed confidence that the takeover would be conducted by the end of January.

HPE said it expects the deal to be accretive to adjusted operating profit and earnings within a year from closing. "Answers to some of society's most pressing challenges are buried in massive amounts of data. Only by processing and analyzing this data will we be able to unlock the answers to critical challenges across medicine, climate change, space and more," its president and chief executive Antonio Neri said. The purchase is focused on HPC-as-a-Service and artificial intelligence and machine learning analytics, the company said.

Breaking the News / IT