HPE completes acquisition of supercomputing leader Cray Inc.

HPC is a key component of HPE셲 vision and growth strategy

San Jose, Calif., Sep짯tem짯ber 25, 2019  Hew짯lett Packard Enter짯pri짯se (NYSE:HPE) today announ짯ced it has com짯ple짯ted the acqui짯si짯ti짯on of super짯com짯pu짯ting lea짯der Cray Inc., ear짯lier than the ori짯gi짯nal tar짯get date. HPE paid $35.00 per share, in a tran짯sac짯tion valued at appro짯xi짯m짯ate짯ly $1.4 bil짯li짯on, net of cash.

The explo짯si짯on of data is dri짯ving a signi짯fi짯cant expan짯si짯on of high per짯for짯mance com짯pu짯ting (HPC) as cus짯to짯mers seek to unlock the power of their data through arti짯fi짯ci짯al intel짯li짯gence, machi짯ne lear짯ning, and big data ana짯ly짯tics, requi짯ring tech짯no짯lo짯gies that can power exas짯ca짯le-class per짯for짯mance. Over the next three years, the HPC seg짯ment of the mar짯ket and asso짯cia짯ted sto짯rage and ser짯vices is expec짯ted to grow from appro짯xi짯m짯ate짯ly $28 bil짯li짯on in 2018 to appro짯xi짯m짯ate짯ly $35 bil짯li짯on in 20211.

HPC is a key com짯po짯nent of HPE셲 visi짯on and growth stra짯tegy as it pro짯vi짯des the back짯bone to pro짯cess, ana짯ly짯ze and extra짯ct insights from mas짯si짯ve amounts of data. The com짯bi짯na짯ti짯on of HPE and Cray is expec짯ted to deli짯ver signi짯fi짯cant cus짯to짯mer bene짯fits and future offe짯rings including:

  • Enhan짯ced port짯fo짯lio: Extends HPE셲 indus짯try-lea짯ding HPC and AI port짯fo짯lio, which pro짯vi짯des more choice and fle짯xi짯bi짯li짯ty for data inten짯si짯ve workloads; 

  • Tech짯no짯lo짯gy inno짯va짯ti짯on: Increa짯ses R&D infra짯struc짯tu짯re and exper짯ti짯se to acce짯le짯ra짯te deve짯lo짯p짯ment of new pro짯ducts and solutions; 

  • Ser짯vice and sup짯port: Aug짯ments world짯wi짯de capa짯bi짯li짯ties and covera짯ge, espe짯ci짯al짯ly within Super짯com짯pu짯ting, whe짯re high cus짯to짯mer touch is paramount; 

  • Exas짯ca짯le lea짯der짯ship: Super짯com짯pu짯ting lea짯der짯ship demons짯tra짯ted by win짯ning the first three exas짯ca짯le sys짯tems in the United Sta짯tes; and 

  • HPC-as-a-Ser짯vice and AI / ML ana짯ly짯tics through HPE Green짯La짯ke offe짯ring cus짯to짯mers choice, fle짯xi짯bi짯li짯ty and speed to market.

Brin짯ging tog짯e짯ther Cray and HPE estab짯lishes the most com짯pre짯hen짯si짯ve end-to-end port짯fo짯lio across com짯pu짯te, sto짯rage, soft짯ware and ser짯vices in the fast-gro짯wing high per짯for짯mance com짯pu짯ting and arti짯fi짯ci짯al intel짯li짯gence mar짯ket seg짯ments, said Phil Davis, pre짯si짯dent, Hybrid IT, Hew짯lett Packard Enter짯pri짯se. 쏝ut, the real value is what we can accom짯plish tog짯e짯ther as one team. We are united in our visi짯on to be a glo짯bal lea짯der in high per짯for짯mance com짯pu짯ting. By com짯bi짯ning the teams deep exper짯ti짯se and R&D engi짯nes, we are bet짯ter posi짯tio짯ned to help our cus짯to짯mers sol짯ve their most data-inten짯si짯ve chal짯lenges both today and well into the future.

As part of the acqui짯si짯ti짯on, Cray pre짯si짯dent and CEO Peter Unga짯ro, will join HPE as head of the HPC and AI busi짯ness unit in Hybrid IT.

For almost 50 years, Cray has been dedi짯ca짯ted to being a lea짯der in super짯com짯pu짯ting in sup짯port of our cus짯to짯mers most important mis짯si짯ons, said Peter Unga짯ro, pre짯si짯dent and CEO at Cray. 쏞ray and HPE have a shared visi짯on for the new exas짯ca짯le era, and by joi짯ning forces, we셱e offe짯ring the pro짯mi짯se of Cray셲 tech짯no짯lo짯gy to an expan짯ded mar짯ket with the oppor짯tu짯ni짯ty to levera짯ge HPE셲 breadth, sca짯le and inno짯va짯ti짯on to bring super짯com짯pu짯ting to the enter짯pri짯se. I셫 exci짯ted for this next chap짯ter, and on behalf of our com짯pa짯ny and Board of Direc짯tors I셝 like to thank our valued cus짯to짯mers, part짯ners, share짯hol짯ders and, of cour짯se, our employees, for all of their con짯tri짯bu짯ti짯ons in making Cray a lea짯der in high-per짯for짯mance computing.

Both HPE and Cray con짯ti짯nue to win new cus짯to짯mers. For ins짯tance, in the last two quar짯ters, The Depart짯ment of Ener짯gy has sel짯ec짯ted Cray셲 Shas짯ta super짯com짯pu짯ting sys짯tems and Slingshot inter짯con짯nect for the first three exas짯ca짯le sys짯tems in the United Sta짯tes. Cray has gene짯ra짯ted more than $1.5B in boo짯kings to date for its new Shas짯ta super짯com짯pu짯ting systems.

HPE also recent짯ly announ짯ced a four-year, mul짯ti-pha짯se col짯la짯bo짯ra짯ti짯on bet짯ween HPE and NASA셲 Ames Rese짯arch Cen짯ter to build a new super짯com짯pu짯ter, which NASA has named 쏛it짯ken, based on the HPE SGI 8600 sys짯tem. Ait짯ken will sup짯port mode짯ling and simu짯la짯ti짯ons of ent짯ry, des짯cent and landing for future lunar landings.

Tog짯e짯ther, HPE and Cray will crea짯te grea짯ter oppor짯tu짯ni짯ties for growth and lead the exas짯ca짯le era of high per짯for짯mance com짯pu짯ting through an inte짯gra짯ted plat짯form, broa짯der sca짯le and com짯bi짯ned resources.

Tran짯sac짯tion Details

Cray is ano짯ther exam짯p짯le of HPE suc짯cessful짯ly acce짯le짯ra짯ting its stra짯tegy and enhan짯cing its com짯pe짯ti짯ti짯ve posi짯ti짯on through acqui짯si짯ti짯ons. Brin짯ging tog짯e짯ther HPE and Cray enables an enhan짯ced finan짯cial pro짯fi짯le for the com짯bi짯ned com짯pa짯ny. The acqui짯si짯ti짯on is expec짯ted to be accre짯ti짯ve to HPE non-GAAP ope짯ra짯ting pro짯fit and ear짯nings in HPE셲 fis짯cal year 2020. HPE will dis짯cuss how the inte짯gra짯ti짯on of Cray sup짯ports signi짯fi짯cant eco짯no짯mic upsi짯de through enhan짯ced growth and pro짯fi짯ta짯bi짯li짯ty at its Secu짯ri짯ties Ana짯lyst Mee짯ting on Octo짯ber 23, 2019.

About Hew짯lett Packard Enterprise

Hew짯lett Packard Enter짯pri짯se is a glo짯bal tech짯no짯lo짯gy lea짯der focu짯sed on deve짯lo짯ping intel짯li짯gent solu짯ti짯ons that allow cus짯to짯mers to cap짯tu짯re, ana짯ly짯ze and act upon data seam짯less짯ly from edge to cloud. HPE enables cus짯to짯mers to acce짯le짯ra짯te busi짯ness out짯co짯mes by dri짯ving new busi짯ness models, crea짯ting new cus짯to짯mer and employee expe짯ri짯en짯ces, and incre짯asing ope짯ra짯tio짯nal effi짯ci짯en짯cy today and into the future.

For짯ward-loo짯king Statements

This docu짯ment con짯ta짯ins for짯ward-loo짯king state짯ments within the mea짯ning of the safe har짯bor pro짯vi짯si짯ons of the Pri짯va짯te Secu짯ri짯ties Liti짯ga짯ti짯on Reform Act of 1995. Such state짯ments invol짯ve risks, uncer짯tain짯ties and assump짯ti짯ons. If such risks or uncer짯tain짯ties mate짯ria짯li짯ze or such assump짯ti짯ons pro짯ve incor짯rect, the results of HPE and its con짯so짯li짯da짯ted sub짯si짯dia짯ries could dif짯fer mate짯ri짯al짯ly from tho짯se expres짯sed or impli짯ed by such for짯ward-loo짯king state짯ments and assump짯ti짯ons. All state짯ments other than state짯ments of his짯to짯ri짯cal fact are state짯ments that could be dee짯med for짯ward-loo짯king state짯ments, inclu짯ding, but not limi짯t짯ed to, any state짯ments regar짯ding the expec짯ted bene짯fits and cos짯ts of the tran짯sac짯tion con짯tem짯pla짯ted by this docu짯ment, inclu짯ding enhan짯ced oppor짯tu짯ni짯ties for growth, the deli짯very of cus짯to짯mer bene짯fits and the rea짯liza짯ti짯on of syn짯er짯gies and other eco짯no짯mic bene짯fits; pro짯jec짯tions of reve짯nue, expen짯ses, net ear짯nings, ope짯ra짯ting pro짯fit, cash flows, or other finan짯cial items; any state짯ments con짯cer짯ning the expec짯ted deve짯lo짯p짯ment, per짯for짯mance, mar짯ket share or com짯pe짯ti짯ti짯ve per짯for짯mance rela짯ting to pro짯ducts or ser짯vices; any state짯ments regar짯ding cur짯rent or future macroe짯co짯no짯mic trends or events and the impact of tho짯se trends and events on HPE and its finan짯cial per짯for짯mance; any state짯ments of expec짯ta짯ti짯on or belief; and any state짯ments of assump짯ti짯ons under짯ly짯ing any of the fore짯go짯ing. Risks, uncer짯tain짯ties and assump짯ti짯ons include the pos짯si짯bi짯li짯ty that expec짯ted bene짯fits may not mate짯ria짯li짯ze as expec짯ted; that the inte짯gra짯ti짯on of the acqui짯si짯ti짯on post-clo짯sing may not occur as anti짯ci짯pa짯ted, and the com짯bi짯ned com짯pa짯nies abili짯ty to achie짯ve the growth pro짯s짯pects and syn짯er짯gies expec짯ted from the tran짯sac짯tion, as well as delays, chal짯lenges and expen짯ses asso짯cia짯ted with inte짯gra짯ting the com짯bi짯ned com짯pa짯nies exis짯ting busi짯nesses may incur; that the par짯ties are unable to suc짯cessful짯ly imple짯ment inte짯gra짯ti짯on stra짯te짯gies; the need to address the many chal짯lenges facing HPE셲 busi짯ness; the com짯pe짯ti짯ti짯ve pres짯su짯res faced by HPE; risks asso짯cia짯ted with exe짯cu짯ting stra짯tegy; the impact of macroe짯co짯no짯mic and geo짯po짯li짯ti짯cal trends and events; the deve짯lo짯p짯ment and tran짯si짯ti짯on of new pro짯ducts and ser짯vices and the enhance짯ment of exis짯ting pro짯ducts and ser짯vices to meet cus짯to짯mer needs and respond to emer짯ging tech짯no짯lo짯gi짯cal trends and other risks that are descri짯bed in HPESEC reports, inclu짯ding but not limi짯t짯ed to the risks descri짯bed in HPE셲 Annu짯al Report on Form 10멚 for its fis짯cal year ended Octo짯ber 31, 2018, and sub짯se짯quent quar짯ter짯ly reports on Form 10멡, and that are other짯wi짯se descri짯bed or updated from time to time in other filings with the SEC. HPE assu짯mes no obli짯ga짯ti짯on and does not intend to update the짯se for짯ward-loo짯king statements.

 

1 Source: Hype짯ri짯on May 2019