Hewlett Packard Enterprise To Buy Cray In $1.3B Deal

Hewlett Packard Enterprise Co HPE will acquire supercomputer manufacturer Cray Inc CRAY in a transaction valued at approximately $1.3 billion.

Bloomberg first reported the news.

What To Know

"Only by processing and analyzing this data will we be able to unlock the answers to critical challenges across medicine, climate change, space and more. Cray is a global technology leader in supercomputing and shares our deep commitment to innovation," Antonio Neri, CEO of HPE said in the press release.

"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."

What's Next

Over the next three years, the group expects the high performance computing segment of the market and storage and services to grow from approximately $28 billion in 2018 to approximately $35 billion in 2021, a compound annual growth rate of approximately 9 percent.

Cray's stock traded higher by 16.2 percent on Friday to $34.65 per share. Shares of Cray have risen 11 percent in the past year, giving it a market value of about $1.2 billion.

Hewlett Packard Enterprise is scheduled to report second-quarter earnings on May 23.