HP Enterprise to buy Silicon Graphics International for $275 million
Hewlett Packard Enterprise on Thursday said that it will buy Silicon Graphics International in a deal valued at $275 million.Palo Alto-based HPE is paying about $7.75 in cash for the Milpitas-based Big Data and high-performance business (NASDAQ: SGI) that employs about 1,100. That’s nearly 30 percent above SGI’s closing price on Thursday.EnlargeHewlett Packard Enterprise CEO Meg Whitman has agreed to pay $275 million to acquire… moreBLOOMBERGSGI is a legendary name in Silicon Valley, although the current business isn’t much like the 3-D graphics workstations it made in its heyday. It was co-founded in 1981 by Jim Clark, who later went on to co-found Netscape with Marc Andreessen. Its original campus was in Mountain View where the Google now has its headquarters.The business suffered a long decline, was de-listed by the New York Stock Exchange and filed for bankruptcy in 2009. Then Rackable Systems bought it and took over its name.It posted an annual loss on Thursday of about $11 million last year on revenue of about $533 million. That compares to a loss of $39 million on revenue of $521 million in fiscal 2015.HPE (NYSE:HPE) said the acquisition will complement its data center, high performance computing and Big Data businesses.