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Cray to be bought by HP Enterprise at 17% premium, in a $1.3 billion deal
Supercomputer maker Cray Inc. announced Friday an agreement to be acquired by Hewlett Packard Enterprise Co. in a deal valued at $1.3 billion. Under terms of the deal, HPE will pay $35 per share in cash for each Cray share outstanding, representing a 17.4% premium to Thursday's closing price of $29.81. Cray's stock had soared 16.6% in premarket trade prior to a trading halt after Bloomberg reported late Thursday that the companies held buyout talks. HPE it expects the deal, which is expected to close by the quarter ending January 2020, should add to adjusted earnings in the first full year, with one-time integration costs absorbed within its fiscal 2020 free cash flow outlook of $1.9 billion to $2.1 billion, which remains unchanged. "Answers to some of society's most pressing challenges are buried in massive amounts of data," said HPE Chief Executive Antonio Neri. "Only by processing and analyzing this data will we be able to unlock the answers to critical challenges across medicine, climate change, space and more." Cray's stock is halted until 8:15 Eastern, while HPE shares slipped 0.2%. Year to date through Thursday, Cray's stock has run up 38%, HPE shares have gained 10% and the S&P 500 has advanced 15%.
https://finance.yahoo.com/m/eaa8f41...e146b2/cray-to-be-bought-by-hp.html?.tsrc=rss
Supercomputer maker Cray Inc. announced Friday an agreement to be acquired by Hewlett Packard Enterprise Co. in a deal valued at $1.3 billion. Under terms of the deal, HPE will pay $35 per share in cash for each Cray share outstanding, representing a 17.4% premium to Thursday's closing price of $29.81. Cray's stock had soared 16.6% in premarket trade prior to a trading halt after Bloomberg reported late Thursday that the companies held buyout talks. HPE it expects the deal, which is expected to close by the quarter ending January 2020, should add to adjusted earnings in the first full year, with one-time integration costs absorbed within its fiscal 2020 free cash flow outlook of $1.9 billion to $2.1 billion, which remains unchanged. "Answers to some of society's most pressing challenges are buried in massive amounts of data," said HPE Chief Executive Antonio Neri. "Only by processing and analyzing this data will we be able to unlock the answers to critical challenges across medicine, climate change, space and more." Cray's stock is halted until 8:15 Eastern, while HPE shares slipped 0.2%. Year to date through Thursday, Cray's stock has run up 38%, HPE shares have gained 10% and the S&P 500 has advanced 15%.
https://finance.yahoo.com/m/eaa8f41...e146b2/cray-to-be-bought-by-hp.html?.tsrc=rss
