Supercomputer developer Cray has agreed to sell its interconnect hardware development assets and related intellectual property to Intel for $140m in cash.
Under the agreement Intel will buy the interconnect technology and related intellectual property which Cray uses on its high-performing computers.
The deal is expected to give a boost to Intel’s high-performance computing portfolio and improve Cray’s balance sheet.
Cray president and CEO Peter Ungaro said, "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."
Intel’s Datacenter and Connected System Group vice president and general manager Diane Bryant said, "The acquisition of Cray’s industry-leading interconnect technology and expertise provides exceptional strategic assets that further enhance Intel’s HPC portfolio."
For Cary, the deal gives opportunities to leverage key differentiating features of certain future Intel products; and boost the company’s financial position.
Intel will add nearly 74 Cray employees who work in interconnect unit though Cray will retain certain rights to use the transferred assets and intellectual property in Cray products.
The Cray interconnect team has developed the successful Gemini interconnect and the upcoming Aries interconnect, Intel stated.
Cray noted it will continue to develop, sell and support current product lines, as it builds it supercomputers with the latest being code-named "Cascade", which will feature Intel Xeon processors.
The transaction is expected to close before the end of the current quarter, after customary closing conditions.
Cray expects to reduce costs in the future periods with the lower headcount resulting from this transaction, with a relatively modest amount of the benefit predicted in 2012.
