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HP Enterprise Climbs Midday After $1.3B Cray Deal

Published 05/17/2019, 10:35 AM
Updated 05/17/2019, 10:55 AM
© Reuters.

Investing.com - High-end computing is about to get more competitive. Hewlett Packard Enterprises agreed to buy supercomputer pioneer Cray for $1.3 billion, or $35 per share, it said on Friday.

The deal will help HPE take on rival IBM (NYSE:IBM). The move will also help the market consolidate, Ray Wang, founder and principal analyst at Constellation Research told Techcrunch.

“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,” Wang said.

HP Enterprise (NYSE:HPE) was up 1.3% after the news, while shares of Cray (NASDAQ:CRAY) skyrocketed 17.4%.

Hewlett-Packard Co completed the spinoff enterprise services business in 2017 and now it looks like HPE is looking to add some more firepower.

The company already supplies supercomputer systems to the University of Notre Dame, the Pittsburgh Supercomputing Center and chemical giant BASF (DE:BASFN), as well as the U.S. Department of Defense.

Latest comments

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HP and  HPE are independent companies, i think the logo in the article shoud be the HPE Logo instead  the HP Inc Logo.
Cray
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