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Intel to buy interconnect hardware unit from Cray

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CIOL Bureau
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CALIFORNIA, USA: Cray, a supercomputer maker, has agreed to sell its interconnect hardware development program and related intellectual property to Intel for $140 million in cash. Under the terms of agreement, Cray would transfer 74 of its employees.

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It would also retain its rights to use the transferred assets and intellectual property in its upcoming products, reports Sylvie Barak of EETimes.

Under the agreement, Cray will also have access to some of the future products of Intel, for some time. Cray’s next-generation supercomputer, code-named “Cascade,” will use Intel's x86 chips.

''The agreement represented “an exciting win” for the firm’s customers, the company and its shareholders. Ungaro added that by broadening Cray’s relationship with Intel, the firm was better placed to push further into the HPC market and expand on other technologies related to its “Adaptive Supercomputing vision,” said Peter Ungaro, president and CEO of Cray.

The deal was a significant boost to Cray’s market capitalisation which stood at $250 million, prior to the deal. Intel has been acquiring a lot of companies to beef up its high performance computing portfolio. It has acquired networking vendor Fulcrum Systems in July 2011 and it has also purchased InfiniBand standard product lines and assets from Qlogic in January 2012 for $125 million in cash.

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