Rackable Systems Completes Acquisition of Silicon Graphics Assets

FREMONT, CA (Gawkwire.com) Rackable Systems, Inc. (NASDAQ:RACK), a leading provider of ecological servers and storage products for medium to large-scale data centers, today announced that it has completed its previously-announced acquisition of the operating assets of the former Silicon Graphics, Inc. With the completion of this acquisition, the company will adopt SGI® as its global name and brand. Rackable Systems president and CEO, Mark J. Barrenechea, will lead SGI in the same capacity. The Rackable Systems board of directors remains unchanged.

Rackable was granted court approval on April 30, 2009 to proceed with the acquisition for $42.5 million in cash and closed the transaction on May 8, 2009. The company expects to report pro forma financial information within 75 days after the closing.

The company expects customers to benefit from an expanded portfolio of cutting-edge, innovative and high performance products for medium and large-scale data centers and HPC, including trusted enterprise x86 cluster compute offerings, shared memory clustered compute products, scalable data center and storage technologies, modular data centers, data management software, HPC tools and emerging visualization technologies.

“We are committed to solving the world’s most demanding business and technology challenges our customers confront every day, whether powering the Internet, exploring for natural resources, modeling meteorological events, enabling financial markets or assisting government and security agencies,” said Mark J. Barrenechea, president and CEO of SGI. “SGI is ready to support our growing customer base with relevant products, global services and the industry’s best expertise.”

The new SGI will have a customer base of over 5,000 in more than 25 countries and approximately 1,350 employees worldwide. SGI will maintain its corporate headquarters in its current Fremont, California facility, with offices around the world. SGI’s new management team, listed on www.sgi.com/management, is comprised of senior executives from Rackable Systems and the former Silicon Graphics, Inc.

Rackable Systems has created Silicon Graphics International as a subsidiary, which has acquired the assets and liabilities specified in the court-approved, and now completed, Asset Purchase Agreement. Rackable Systems, Inc. will also change its name to a Silicon Graphics International entity, with Rackable Systems surviving as a product line. Silicon Graphics International will be branded as SGI® going forward.