U.S. Markets closed

HP Enterprise Climbs Midday After $1.3B Cray Deal

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%.

HP Enterprise has been paring down since a breakup of Hewlett-Packard Co, completing a spinoff and merger of its enterprise services business in 2017. 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.


Related Articles

U.S. nears removal of tariffs on Canada, Mexico metals: media

Starbucks' China rival Luckin serves up a hot debut

Amazon squares up to Uber with backing for UK food app Deliveroo