A trader passes by the post Hewlett Packard Enterprise Co., is traded on the floor of the New York Stock Exchange (NYSE) in New York City, USA, May 25, 2016. REUTERS/Brendan McDermid
(Reuters) – Supercomputer manufacturer Cray Inc. said on Friday it would be acquired by Hewlett Packard Enterprise Co in a deal worth around $1.30 billion, net of cash.
The $35 per share value represents a premium of 17.4% to Tropic last close.
HPE said it expects the deal to increase the footprint in the federal business and the academic world, and sell supercomputing products to its business customers.
The deal, expected in the first quarter of HPE ‘ s fiscal year 2020, will add it to the custom operating profit in the first full year after closing.
As part of the deal, HPE expects to lose one-time integration costs which will be included in the fiscal year 2020 free cash flow outlook of $1.9 billion to $2.1 billion, which remains unchanged.
Seattle-based Cray has been in the USA on the basis of the production and approximately 1300 employees worldwide. It earned $456 million in sales in the last fiscal year.
Cray supercomputing systems can handle huge data sets, converged modelling, simulation, artificial intelligence, and analytics workloads.
Reporting by Arjuna Panchadar in Bengaluru; Editing by Shounak Dasgupta