Tera completes Cray acquisition

Seattle 06 Apr 00 Tera has closed its acquisition of the Cray vector supercomputer business unit, and the Cray brand name from SGI. The acquisition was made in exchange for $15 million in cash, one million shares of unregistered common stock and a nine-month promissory note in the amount of $36.3 million subject to adjustment upon final audit.

A large portion of the principal amount of the promissory note represents service revenue that has been prepaid to SGI. Tera has assumed the liability of performing those services and SGI will pay out (reimburse) that prepaid revenue to Tera on a monthly basis as those services are performed. Subject to final adjustments, the value of these prepaid service revenues is estimated to be approximately $22 - $28 million, practically all of which are scheduled to be paid out in the first 12 months.

The Company has been renamed Cray Inc., and has applied to Nasdaq to have its NM ticker symbol changed from TERA to CRAY.

"The re-emergence of Cray as an independent company represents the start of a new chapter in high performance computing. I am proud to be part of this exciting company and look forward to leveraging the many talents of our employees," said Jim Rottsolk, Tera president and chief executive officer. "Cray Inc. has the world's foremost supercomputing technology, R&D, manufacturing, sales and service capabilities. We are focused on bringing the best technology and product solutions to supercomputing customers throughout the world."

Ad Emmen

[News on Advanced IT] [Calendar] [Analysis] [IT in Medicine]