Hewlett Packard Enterprise (HPE) and Cray have entered into a definitive agreement under which HPE will acquire Cray for approximately $1.3 billion. The transaction is expected to close by the first quarter of HPE’s fiscal year 2020, subject to regulatory approvals and other customary closing conditions.

High performance computing is a key component of HPE’s vision and growth strategy, the company said in a statement. The combination of HPE and Cray is expected to deliver benefits like future HPC-as-a-Service and AI/ML analytics through HPE GreenLake, and a comprehensive portfolio of HPC infrastructure; compute, high-performance storage, system interconnects, software and services supplementing existing HPE capabilities, according to HPE.

Cray is headquartered in Seattle, Washington, with US-based manufacturing, and has approximately 1,300 employees worldwide. The company delivered revenue of $456 million in its most recent fiscal year, up 16 percent year over year.

[Image courtesy: Cray]