HPE is set to acquire supercomputer manufacturer Cray in a deal valued at about US$1.3 billion and set to increase HPE's footprint in federal business and academia, and sell supercomputing products to its commercial clients.
The US$35 per share value represents a premium of 17.4 per cent to Cray's last close.
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.
As part of the deal, HPE expects to incur one-time integration costs that will be absorbed within its fiscal year 2020 free cash flow outlook of US$1.9 billion to US$2.1 billion that remains unchanged.
Seattle-headquartered Cray has US-based manufacturing operations and about 1,300 employees worldwide. It earned US$456 million in revenue in its last fiscal year.
Cray's supercomputing systems can handle massive data sets, converged modelling, simulation, artificial intelligence, and analytics workloads.
(Reporting by Arjun Panchadar in Bengaluru; Editing by Shounak Dasgupta)
Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.