Seattle-based Cray announced on Wednesday that it will pay $15 million in cash and 12.7 million in shares, which at closing price that day totaled $115 million. But in trading Thursday, Cray's stock price dropped 69 cents, or 9 percent, to $7.26, lowering the total value of the deal from $130 million to $107 million.
Both companies' boards have approved the deal, which is expected to close within 60 days, Cray said.
OctigaBay, based in Vancouver, is working on an Opteron-based machine that links groups of processors directly to each other. While the supercomputing market is being remade by clusters of low-cost machines, those typically use systems with chips that communicate through more indirect channels.
OctigaBay's technology comes at a price, however; the company's 12K machine will cost between $100,000 and $2 million, Cray said. The 12K has 12 processors devoted to computing but can be stacked in a rack with as many as 144 processors, OctigaBay said.
Cray has specialized in exotic supercomputer designs, but it is increasingly relying on more ordinary components such as AMD's Opteron, a chip that adds 64-bit features to the 32-bit "x86" chips sold by AMD and Intel. The 64-bit features boost the amount of memory Opteron can use, and the chip has won acclaim for its high-speed HyperTransport communications link and built-in circuitry for controlling memory.
Opteron is at the heart ofat Sandia National Laboratories. The machine, expected to be up and running this year, is expected to have a speed of 40 trillion calculations per second. In October, Cray said it was .
Cray is betting hard on Opteron: The Red Storm and OctigaBay products will increase its potential customer base and allow it to tap into a market four times larger than at present, the company said.
On Thursday, Opteron got another supercomputing boost with the announcement of support from Quadrics, which makes high-speed networking gear that links separate computers into a high-performance cluster.
Quadrics supports Novell's SuSE version of Linux running on Opteron, including its 64-bit extensions, and its software is tuned for the memory access requirements of Opteron systems, Quadrics said.
Opteron is arriving in the mainstream server market as well:on Tuesday, and , which focuses on Opteron servers. IBM has plans for general-purpose Opteron systems, but so far only sells its .