HP Enterprise, a subsidiary offering B2B solutions from Hewlett-Packard, today announced the purchase of the $ 1.3 billion Cray high-performance computing company founded in the 1970s. According to analysts, the purchase is a smart move by HP, which acquires, with the transaction, a portfolio that could be used in the coming of the era of quantum computing.
Cray was born with the aim of developing supercomputers so that companies where they were installed could create innovative solutions through the computational development that ordinary machines could never process. In recent years, however, the company has been losing money in recent years. Despite the losses, its portfolio has many possibilities in the area of processing and analysis of massive amounts of data (Exadata).
“The answers to some of society’s most pressing issues are buried under massive volumes of data,” said HPE president and CEO Antonio Neri. “Only through the processing and analysis of the data can we reach the answers to critical challenges related to Medicine, Climate Change, Space and many others. Cray is a global technology leader in the area of supercomputing and shares our deep commitment to innovation. By combining our world-renowned teams and technologies, we will have the opportunity to drive the next generation of high-performance computing, playing an important role in advancing the way people live and work. “
The acquisition provides for the payment of US $ 35 per share in cash, which, in the total amount, reaches the amount of US $ 1.3 billion described above.
“This is a spectacular opportunity to unite Cray’s cutting-edge technology with the in-depth influence and portfolio of HPE, bringing customers of all sizes integrated solutions and unique supercomputing technology to meet the full spectrum of their data demands, said Cray CEO and President Peter Ungaro. “HPE and Cray share this commitment to consumer-centric innovation as well as the vision to create a global leader for the future of high-performance computing and artificial intelligence. On behalf of Cray’s entire board of directors, we are delighted to have reached this agreement, which we believe will maximize our value and we are also excited about the opportunities this unique combination will create for our employees and customers. “
It has not yet been informed what the process will be for employees. However, HPE has two options: the first involves expanding its own structure to accommodate Cray’s workforce, absorbing them as HP employees; the second and, regrettably, the most common in these acquisitions, is to dismiss a portion of employees.
The transaction has not yet been approved by the United States regulatory authorities. But the analysts’ expectation is that everything goes well and the acquisition is completed by the first fiscal quarter of 2020.