HPE BUYS CRAY

Hewlett Packard Enterprise (HPE) has bought Cray in a $1.3 billion acquisition. HPE is offering $35 cash a share for the stock.

Cray’s stock was halted pending this news. Cray is listed on the NASDAQ exchange. Cray is the well known supercomputer manufacturer. The company was established in 1972 by Seymour Cray. Seattle-headquartered Cray has U.S.-based manufacturing operations and about 1,300 employees worldwide. It earned $456 million in revenue in its last fiscal year.

HPE is expected to see about $1.9 billion to $2.1 billion in costs related to the integration. HPE wanted to expand its operations in government and they also want to market supercomputers to the corporate market.

The deal, expected to close by the first quarter of HPE’s fiscal year 2020, will add to its adjusted operating profit in the first full year after closing.