Rackable to Buy SGI

April 6, 2009: Enterprise data centre Server and storage specialist Rackable Systems has announced that it has signed an agreement with Silicon Graphics Incorporated to buy the company for around US$25 (AU$35) million in cash.

Rackable says that by combining its expertise with SGIs, it will be in a position to provide customers with market leading hardware and software technology within large-scale x86 cluster computing, HPC, Internet, Cloud Computing, large-scale data storage environments and visualisation platforms across many verticals and geographies.

This combination is also expected to result in a stronger global services organisation; reaching commercial, government and scientific sectors on a worldwide basis.

“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.”

The deal is expected to close within 60 days

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