Rackable Systems, Inc. (NASDAQ:RACK), a leading provider of servers and storage products for medium to large-scale data centers, announced its agreement to acquire substantially all the assets of Silicon Graphics, Inc. (SGI)  for approximately $25 million in cash, subject to adjustment in certain circumstances, plus the assumption of certain liabilities associated with the acquired assets.

sgi had previously filed for Chapter 11.  The deal is subject to such conditions and uncertainties, the transaction is expected to close within approximately 60 days. sgi shares closed up 36.5 c to 49c a share. sgi shares have traded as low as 8c in recent times and one year ago were trading around $12.00 a share.

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