HPE to Acquire Cray for USD 1.3 BN All Cash Deal

Hewlett Packard Enterprise plans to acquire Cray in a transaction valued at approximately $1.3 billion worth of cash expected to close by January 2020.

The acquisition will further strengthen HPE’s portfolio by leveraging Cray’s foundational technologies and adding complementary solutions. The combined company will also reach a broader set of end markets, offering enterprise, academic and government customers a broad range of solutions and deep expertise to solve their most complex problems. Together, HPE and Cray will have enhanced opportunities for growth and the integrated platform, scale, and resources to lead the Exascale era of high-performance computing.

The combination of HPE and Cray is expected to deliver significant customer benefits including:

• Future HPC-as-a-Service and AI / ML analytics through HPE GreenLake
• A comprehensive end-to-end portfolio of HPC infrastructure – compute, high-performance storage, system interconnects, software and services supplementing existing HPE capabilities to address the full spectrum of customers’ data-intensive needs
• Differentiated next-generation technology addressing data-intensive workloads
• Increased innovation and technological leadership from leveraging greater scale, combined talent and expanded technology capabilities
• Enhanced supply chain capabilities leveraging US-based manufacturing

Cray is a leader of high-end supercomputing solutions that address customers’ most challenging, data-intensive workloads for making critical decisions. The Seattle-based company has a leadership position in the top 100 supercomputer installations around the globe.

Cray’s supercomputing systems, delivered through their current generation XC and CS platforms, and next-generation Shasta series platform, have the ability to handle massive data sets, converged modeling, simulation, AI, and analytics workloads.

The recent announcement by Cray was about an Exascale supercomputer contract for over $600 million for the U.S. Department of Energy’s Oak Ridge National Laboratory. Exascale is currently targeted to be the world’s fastest system which enables groundbreaking research and AI at an unprecedented scale, using Cray’s new Shasta system architecture and Slingshot interconnect. The company was also part of an award with Intel for the first U.S. Exascale contract from the U.S. Department of Energy’s Argonne National Laboratory.

Bringing together HPE and Cray enables an enhanced financial profile for the combined company that includes several revenue growth opportunities and cost synergies.

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