Intel to buy key assets from supercomputer maker Cray

The chipmaker is bulking up its interconnect portfolio by purchasing technology from the supercomputer pioneer in a $140 million deal.

Supercomputer maker Cray will sell its interconnect hardware development program and related intellectual property to Intel for $140 million in cash, the two companies announced today.

Up to 74 Cray employees will join Intel, Cray said. The company currently employs approximately 800 people worldwide.

"By broadening our relationship with Intel, we are positioned to further penetrate the [high-performance computing] market," said Peter Ungaro, president and CEO of Cray, in a statement.

Ungaro continued, "This agreement also dramatically strengthens our balance sheet and increases our options for further growth, profitability and creating shareholder value."

Cray said it will continue to develop, sell, and support current product lines, as well as the company's next-generation supercomputer code-named Cascade.

Intel said it gains access to "Cray's world-class interconnect personnel and intellectual property." Interconnect technology is a high-speed link between high-performance computers.

The transaction is expected to close relatively quickly, subject to customary closing conditions, the companies said.

Intel is apparently on an interconnect buying binge. In January, it purchased the product lines and related assets of InfiniBand from Qlogic and said it expected to hire "a significant number" of Qlogic employees.

About the author

Brooke Crothers writes about mobile computer systems, including laptops, tablets, smartphones: how they define the computing experience and the hardware that makes them tick. He has served as an editor at large at CNET News and a contributing reporter to The New York Times' Bits and Technology sections. His interest in things small began when living in Tokyo in a very small apartment for a very long time.

 

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