Cray has announced the signing of a definitive agreement to sell its interconnect hardware development program and related intellectual property to Intel for $140 million in cash.
‘This agreement is evidence of the leadership position we’ve established in high-performance computing, and is an exciting win for our customers, our company and our shareholders,’ said Peter Ungaro, president and CEO of Cray. ‘By broadening our relationship with Intel, we are positioned to further penetrate the HPC market and expand on our industry-leading technologies in support of our Adaptive Supercomputing vision. Our product roadmap remains intact as we continue to build the highly differentiated, tightly integrated supercomputers that our customers have come to expect from Cray. This agreement also dramatically strengthens our balance sheet and increases our options for further growth, profitability and creating shareholder value.’
Under the agreement, Cray will continue to develop, sell and support current product lines, as well as the company’s next-generation supercomputer code-named ‘Cascade’. Cray will retain certain rights to use the transferred assets and intellectual property in its products and up to 74 of the company’s employees will join Intel. The transaction is expected to close before the end of the current quarter, subject to customary closing conditions.
