Posted by: : Category: Silicon Graphics has agreed to be acquired by Rackable Systems for about $25 billion in cash, a merger of convenience for the two data and storage companies. SGI filed for Chapter 11 bankruptcy in a New York court as part of the process, listing assets of
$390.5 million and total debt of $526.5 million, Reuters reports.
Rackable also announced that it had suspended its previously
announced program including the repurchase of up to $40 million of the
company’s stock, according to an SGI statement.
Once a Silicon Valley powerhouse with a peak market cap pf $7 billion, Silicon Graphics was delisted by the New York Stock Exchange in 2005 and had declared bankruptcy once before. It on the verge of being delisted by NASDAQ this month.
The companies hope to conclude the deal in 60 days.
Source: John C Abell
