Rackable to the rescue
High-performance server maker Silicon Graphics (SGI) filed for Chaper 11 bankruptcy today, only to have its assets and some liabilities bought by fellow server outfit Rackable systems for $25 million in cash.
The combined businesses will focus on large-scale x86 cluster computing, HPC, cloud computing, large-scale data storage environments and visualization platforms.
"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.
"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 acquisition is expected to close within two months, depending on "conditions and uncertainties." SGI is expected to continue trading during this period.
