The last decade-plus hasn’t been great for SGI. The company formerly known as Silicon Graphics declared Chapter 11 in 2009. That same year, it was sold to Rackable for a song, with that company somewhat confusingly changing its own name to SGI (short for Silicon Graphics International) during the process.
Now former competitor Hewlett Packard Enterprise (which spun out from HP last year) is picking up the whole kit and caboodle for around $275 million, a price tag that includes both cash and company debt. That all works out to $7.75 a share.
In its current state, the server and high-performance computer maker employees 1,100 people internationally. In a statement announcing the acquisition, HPE stated that it believes the former competitors offer “complementary product portfolios and go-to-market approaches.” The deal, which is expected to close in Q1 of next year (subject to all the standard regulatory caveats), will combine the companies’ offerings into a single portfolio.
Here’s SGI CEO Jorge Titinger on the deal: “Our HPC and high-performance data technologies and analytic capabilities, based on a 30+ year legacy of innovation, complement HPE’s industry-leading enterprise solutions. This combination addresses today’s complex business problems that require applying data analytics and tools to securely process vast amounts of data.”