In an effort to invest in high-performance commuting, Hewlatt Packard Enterprise has agreed to buy supercomputer maker Cray. They have decided to pay $35 a share in cash for each share that Cray held. Cray designs and builds supercomputers as well as software for high-performance computers but does not produce the main processing chips. For HPE, "the deal brings in a business booking strong revenue from government-led supercomputing projects that have multiplied in recent years as competition between the U.S. and China." This is a good move for HPE as they continue to rebrand themselves and by adding this component, they can appeal to more customers as 80% of Clay's customers are government officials. This is a move in the right direction to keep their company ahead of the times as "the market for high-performance computing and associated storage and services is expected to grow about $35 billion in 2021 from about $28 billion in 2018." HPE is actually expecting the deal to boost earnings the first full year after the deal closes and by acquiring Clay, HPE has effectively been able to reach a larger target audience and rebrand themselves to be more inclusive.
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