Intel to buy assets from Cray for $140 million

SANTA CLARA, Calif. (AP) Intel Corp. has agreed to buy supercomputing assets from Cray Inc. for $140 million in cash. Intel said Tuesday that the purchase of Cray's so-called "interconnect technology" and expertise will enhance its high-performance computing portfolio.

The deal is expected to close before the end of June.

Cray CEO Peter Ungaro said the transaction will broaden its relationship with Intel and strengthens the company's balance sheet.

Cray's interconnect team is responsible for creating a next-generation supercomputer codenamed "Cascade," which will integrate Intel's Xeon processors.

Intel shares rose 22 cents to $27.53 in after-hours trading after closing down 14 cents at $27.31 in the regular session. Cray shares had closed up 6 cents at $7.04.