Rackable Systems, Inc. has announced that it received court approval to acquire substantially all of the assets of Silicon Graphics, Inc. (SGI) for $42.5 million in cash, plus the assumption of certain liabilities associated with the acquired assets.

The sale, pursuant to an amended asset purchase agreement as approved today in U.S. Bankruptcy Court in New York, allows Rackable Systems to complete the previously announced transaction under Section 363 of the U.S. Bankruptcy Code. The acquisition is anticipated to be completed by approximately May 8, 2009, subject to closing conditions.

“We are pleased with today’s news,” said Mark J. Barrenechea, president and CEO of Rackable Systems. “With this acquisition, Rackable will be positioned to solve the most demanding business and technology challenges our customers confront today. We believe we will have a stronger company with differentiated product lines and professional services; reaching commercial, government and scientific sectors on a worldwide basis.”

Rackable and SGI customers will benefit from a comprehensive portfolio of hardware, software and services, enabling the deployment of technologies for large-scale data storage and management, clustered compute scale-out, shared memory systems, visualization solutions, data center solutions and HPC productivity tools.

To learn more and for further updates, please visit www.rackable.com/sgi.