From way out in left field comes a press release this morning jointly from Rackable and Silicon Graphics. According to the press release, Rackable has agreed to acquire “substantially all the assets of Silicon Graphics, Inc. for approximately $25 million in cash.” The agreement includes Silicon Graphics filing for Chapter 11 bankruptcy protection in order to reduce their overall debt load. 
The combined company will be positioned to solve the most demanding business and technology challenges our customers confront today,” said Mark J. Barrenechea, president and CEO of Rackable Systems. “In addition, this combination gives us the potential for significant operational synergies, a strong balance sheet, and positions the combined company for long-term growth and profitability.”
“We have been working very hard to strengthen our company, and today, we’ve taken another big step in that direction,” stated Robert “Bo” Ewald, CEO of Silicon Graphics. “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.”
Barrenechea added, “Together, we believe we will be a much stronger entity with great products and people offering a compelling proposition to compete more effectively in, and across, our collective markets.”
Rackable has since suspended its previously announced stock repurchase program. Read the full releases notices as follows:
Silicon Graphics Press Release
Rackable Systems Press Release
[UPDATED] Rackable SEC filing
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