A marriage in supercomputing land: Cray acquires Appro for $25 million in cash

A marriage in supercomputing land: Cray acquires Appro for $25 million in cash

Two super-duper computing firms are to become one as Cray today announced that it has agreed to purchase Appro International, a privately-held developer of ‘scalable supercomputing solutions’, for approximately $25 million in cash.

The acquisition price assumes at least a $3.5 million net working capital balance at closing, sans debt.

Headquartered in Silicon Valley and currently the #3 provider on the Top100 supercomputer list, according to the release, Appro has builds advanced high-performance computing (HPC) cluster systems.

The company was founded in the early 1990s.

Notably, Intel acquired Cray’s high-performance computing interconnect program back in April 2012.

Comments Peter Ungaro, president and CEO of Cray:

“Appro is one of the market leaders in HPC cluster solutions, and this acquisition is another step forward as we continue to transform Cray into a company that provides world-class offerings to customers across all segments of the supercomputing market, including Big Data.”

Upon closing of the deal, Appro will become Cray’s newly-formed “Cluster Solutions” business, led by Daniel Kim, current CEO of Appro. Cray will sell Appro’s HPC cluster products under its own brand.

Approximately 90 Appro employees will join Nasdaq-listed Cray as a result of the acquisition.

In other but related news, Cray also announced financial results for the third quarter ended September 30, 2012, earlier today.

The company booked a net loss of $5.2 million on revenue of $35.7 million for the quarter.

Image credit: Justin Sullivan / Getty Images

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