(Bloomberg) --Hewlett Packard Enterprise Co. has agreed to buy U.S. supercomputer maker Cray Inc. in a deal valued at about $1.4 billion as the firm works to become more competitive in high-end computing.
Cray investors will get $35 a share in cash, the companies said in a statement on Friday, confirming an earlier Bloomberg report. That represents a premium of about 17 percent above Thursday’s closing price. The deal values Cray at $1.3 billion net of cash, the firms said in the statement.
Cray jumped 17 percent to $34.89 at 9:49 a.m. in New York trading after earlier touching $34.96, the biggest intraday gain in a year. Palo Alto-based HP Enterprise gained about percent to $14.82.
The deal will help HP Enterprise strengthen its position against International Business Machines Corp. It could also become HP Enterprise’s biggest since it started trading in 2015, surpassing its acquisition of Nimble Storage Inc. for about $1 billion more than two years ago, according to data compiled by Bloomberg.
By Liana Baker and Ed Hammond.
Full story at Information Management.
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