Rackable Systems, Inc. has announced its agreement to acquire the assets of Silicon Graphics, Inc. (SGI) for approximately US$25 million in cash.
SGI was founded in 1982 by Professor Jim Clark who left the Stanford University to develop 3-D computer graphics technology. By 1997 the company was reporting fiscal year revenues of US$3.66 billion.
Rackable Systems provides servers and storage products for medium to large-scale data centers.
The combined businesses will provide customers with technology within large-scale x86 cluster computing, HPC, Internet, Cloud Computing, large-scale data storage environments and visualization platforms across many verticals and geographies.
"The combined company will be positioned to solve the most demanding business and technology challenges our customers confront today," said Mark J. Barrenechea, president and CEO of Rackable Systems. "In addition, this combination gives us the potential for significant operational synergies, a strong balance sheet, and positions the combined company for long-term growth and profitability."
"We have been working very hard to strengthen our company, and today, we've taken another big step in that direction," stated Robert "Bo" Ewald, CEO of Silicon Graphics. "This transaction represents a compelling opportunity for Silicon Graphics' customers, partners and employees, who can all benefit from the emerging stronger company with better technologies, products and markets reach."
Barrenechea added, "Together, we believe we will be a much stronger entity with great products and people offering a compelling proposition to compete more effectively in, and across, our collective markets."
SGI filed for bankruptcy protection on 1st April 2009, followed by Rackable signing an Asset Purchase Agreement to acquire all the assets of SGI. Rackable will assume certain liabilities relating to the assets, pursuant to Chapter 11 of the U.S. Bankruptcy Code.