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More details on the SGI/Rackable deal

by on April 1, 2009
 

Update #2: Hear the actual interview with Bob Pette, along with a better explanation of the acquisition from John West of InsideHPC in our Special Edition Podcast.

Update: See a summary of our Interview with SGI VP Bob Pette about the acquisition.

John West at InsideHPC has gathered some more information on the SGI/Rackable deal, and it seems the deal isn’t quite as solid as originally reported.

The sale is actually being made via a section 363 “stalking horse” procedure, which means there is a 25-day window for other bidders to come in and buy SGI instead.  If none come, however, Rackable gets SGI without the debt. It’s pretty much a done deal because, as John points out:

But the word “short” is part of the problem from the perspective of those other bidders. Rackable has (likely) had a much longer amount of time for due diligence on the sale and, according to the Focus article probably has stacked up some other benefits as well.

I’m still attempting to reach people inside SGI for more information.  If anyone inside wants to speak about the impacts of this on SGI business (VUE, Hardware, sales, support, etc) contact me!

SGI, Rackable, and the stalking horse | insideHPC.com.