The handwriting is clearly on the wall as San Jose, California Hewlett Packard Enterprise, the global enterprise-level computer technology company, has announced that it will be acquiring the iconic Cray supercomputer company based in Seattle, Washington-based for approximately $1.3 billion; subject of course to the normal and customary shareholder, regulatory, and other closing conditions. The acquisition is expected to close by the first quarter of HPE’s fiscal year 2020.
However, it appears that some major securities law firms are trolling for clients unhappy with the deal and are willing to allege that there were potential breaches of fiduciary duty and other violations of law by the Board of Directors of Cray Inc. in connection with the proposed acquisition of the Company.
According to HPE’s President and CEO Antonio Neri, “Answers to some of society’s most pressing challenges are buried in massive amounts of data. Only by processing and analyzing this data will we be able to unlock the answers to critical challenges across medicine, climate change, space and more. Cray is a global technology leader in supercomputing and shares our deep commitment to innovation. By combining our world-class teams and technology, we will have the opportunity to drive the next generation of high performance computing and play an important part in advancing the way people live and work.”
Neri went on to note, “We also expect to deliver significant cost synergies through efficiencies and by leveraging proprietary Cray technology, like the Slingshot interconnect, to lower costs and improve product performance.”
Efficiencies is a management and Wall Street code-word for eliminating redundant functions, departments, projects, and personnel. It is now time for employees to assess their value to the continuing enterprise programs and if their positions are duplicated within the combined enterprise.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere ... are you now wondering, Am I Next?