Rackable Systems, a California-based provider of servers and storage products for data centres, has acquired rival Silicon Graphics Inc (SGI) for $25m (£16.5m).

Rackable Systems, a California-based provider of servers and storage products for data centres, has acquired rival Silicon Graphics Inc (SGI) for $25m (£16.5m).

Rackable aims to use SGI’s assets to bolster its cluster and cloud computing businesses. The deal comes shortly after SGI filed for bankruptcy in the US, after delisting from the NASDAQ stock exchange last month.  

Robert Ewald, SGI chief executive, commented: “This transaction represents a compelling opportunity for SGI’s customers, partners and employees, who can all benefit from the emerging stronger company with better technologies, products and market reach.”

Rackable reported a decrease in revenues of 29 per cent to $247.4 million (£168.9 million) in the fiscal year 2008.