HPE announced it was buying Cray for $1.3 billion, giving it access to the company’s high-performance computing portfolio, and perhaps a foothold into quantum computing in the future.
The purchase price was $35 a share, a $5.19 premium over yesterday’s close of $29.81 a share. Cray was founded in the 1970s and for a time represented the cutting edge of super computing in the United States, but times have changed, and as the market has shifted, a deal like this makes sense.
Ray Wang, founder and principal analyst at Constellation Research, says this is about consolidation at the high end of the market. “This is a smart acquisition for HPE. Cray has been losing money for some time but had a great portfolio of IP and patents that is key for the quantum era,” he told TechCrunch.
While HPE’s president and CEO Antonio Neri didn’t see it in those terms, he did see an opportunity in combining the two organizations.
“By combining our world-class teams and technology, we will have the opportunity to drive the next generation of high performance computing and play an important part in advancing the way people live and work,” he said in a statement.