Schnitger Corporation

Rackable Systems buying SGI

Since this is from an SEC filing, I don’t think it’s a practical joke: Rackable Systems will
buy "substantially all the assets, except for certain excluded assets, of SGI for $25 million,
subject to adjustment in certain circumstances, plus the assumption of certain liabilities
associated with the acquired assets." Further, SGI today filed for Chapter 11 bankruptcy.

"[T]his combination gives us the potential for significant operational synergies, a strong
balance sheet, and positions the combined company for long-term growth and profitability,"
said Mark J. Barrenechea, president and CEO of Rackable Systems, while the CEO if SGI,
“Bo” Ewald, said "[w]e have been working very hard to strengthen our company, and today,
we’ve taken another big step in that direction. This transaction represents a compelling
opportunity for Silicon Graphics’ customers, partners and employees, who can all benefit
from the emerging stronger company with better technologies, products and markets
reach.”

All for $25 million. Remember how much those cool SGI Indigos cost?

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