SGI Acquires SGI Japan

By Chris Preimesberger  |  Posted 2011-03-10 Print this article Print

SGI intends the acquisition of its namesake to serve as a strategic entry into the technical computing market of Japan. SGI Japan operates primarily as a sales and service organization.

High-performance computer maker SGI has decided to buy SGI for $18 million in cash. Yes, you read that correctly.

Fremont, Calif.-based SGI, once a power in the desktop workstation business as Silicon Graphics Inc., revealed March 9 that it has acquired all outstanding shares of its namesake, SGI Japan, Ltd., from a consortium of investors. Those include NEC, Sony, Canon Marketing Japan, and Morgan Stanley MUFG Securities.

Even though they shared the same name, the two companies were not interacting on a regular basis.

SGI currently produces high-end custom servers, storage arrays, and video-related software -- mostly for military and government customers.

The purchase price of $17.9 million also includes $27 million of net working capital. SGI previously owned 10.4 percent of SGI Japan.

SGI intends the acquisition to serve as a strategic entry into the large technical computing market of Japan, the company said. SGI Japan operates primarily as a sales and service organization.

The acquisition, which closed on March 9, is expected to add more than 400 customers in vertical markets that include government, manufacturing, telecommunications, media and education. SGI will add 272 employees from the current SGI Japan staff.

Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz

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