Court Approves Rackable-SGI Deal
Rackable Systems(RACK) has received court approval to acquire substantially all of the assets of Silicon Graphics, Inc. (SGI) for $42.5 million in cash, plus the assumption of some of SGI’s liabilities. That’s higher than the $25 million purchase price when the deal was announced on April 1. The amended asset purchase agreement was approved yesterday in U.S. Bankruptcy Court in New York, and the deal is expected to be completed by May 8, subject to closing conditions.
“We are pleased with today’s news,” said Mark J. Barrenechea, president and CEO of Rackable Systems. “With this acquisition, Rackable will be positioned to solve the most demanding business and technology challenges our customers confront today. We believe we will have a stronger company with differentiated product lines and professional services; reaching commercial, government and scientific sectors on a worldwide basis.”