Monday, May 11, 2009

Rackable Systems Completes $42.5M SGI Acquisition

Rackable Systems Inc., an IT-hosting services provider for medium- to large-scale data centers, announced today that its $42.5 million cash acquisition of Silicon Graphics Inc. has closed. The transaction, which helped bail SGI out of bankruptcy, was originally reported April 1 for the amount of $25 million. The discrepancy between the initially reported and actual amounts was not explained. Based in Fremont, Rackable said it will adopt SGI as its global name and brand. Mark J. Barranechea, Rackable's president and chief executive, will lead the new SGI in the same capacity, Rackable noted, adding that its board of directors will also remain unchanged.