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SGI Acquires Linux Networx Assets

Ladies and gentlemen, John West was right and the ball has officially dropped. SGI has just announced that it has acquired the core assets of Linux Networx. The acquisition of patents, LNXI software, expertise and technology came in exchange for the issuance of SGI common stock. Alongside the deal is an investment into SGI by Oak Investment Partners and Lehman Brothers.

This is another significant step in the growth of SGI,” said Bo Ewald, SGI Chief Executive Officer. “We’ve grown orders more than 30 percent in each of the last two quarters. We’re in a position to acquire key technology and expertise to further power our growth. This represents the first of such key technology acquisitions and will help further the development of our software environment and support for our clustered systems. In addition, we are very pleased that Oak and Lehman Brothers have provided additional financing to the company to help speed our growth.”

Several key patents in the way of cluster design and cooling were acquired. These patents will prove integral to SGI’s success in their Altix XE and Altix ICE product lines.

Read the full article here.

Comments

  1. Rumors were that it was ‘cray’ doing the buying of assets, I suppose with their loss now public, the shareholders wouldn’t have liked another sinking ship on it’s books.

    I bet ‘sgi’ got LNXI for deal. That would make sense. Bo Ewald knew what was good, bad and ugly about LNXI being it’s CEO for over 2 years. LNXI’s investors looked to have turned their investment in to sgi stock, so they don’t lose too much.

    All the good people that LNXI that weren’t on sgi’s shopping list are now looking for a new home. Shame really, it almost worked out. Glad I got out when I did!

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