RIP SGI – now owned by Rackable Systems

Silicon Graphics (SGI) is no more, they filed for Chapter 11 bankruptcy protection on April 1st and have just been bought by Rackable Systems. I don’t think this is an elaborate April Fool (and if it was I think the SEC might have a thing or two to say about it). Both Rackable and SGI have identical press releases (Rackable PRSGI PR) on the transaction for a mere US$25 million.

FREMONT, CA and SUNNYVALE, CA., April 1, 2009 – Rackable Systems, Inc. (NASDAQ:RACK), a leading provider of servers and storage products for medium to large-scale data centers, today announced its agreement to acquire substantially all the assets of Silicon Graphics, Inc. (SGI) (NASDAQ: SGIC) for approximately $25 million in cash, subject to adjustment in certain circumstances, plus the assumption of certain liabilities associated with the acquired assets.

Rackable has signed an Asset Purchase Agreement to acquire substantially all the assets of SGI, and to assume certain liabilities relating to the assets, pursuant to Chapter 11 of the U.S. Bankruptcy Code, under which SGI filed its petition in New York on April 1, 2009

I guess it’s better than SGI going under completely, but there’s going to be a number of customers now rather worried about their investments..