Special Report: Global Financial Crisis

Rackable Systems, a California-based provider of servers and storage products, on Wednesday agreed to pay 25 million U.S. dollars in cash to acquire most assets of Silicon Graphics, a former Silicon Valley star company.(File Photo) Photo Gallery>>>

    SAN FRANCISCO, April 1 (Xinhua) -- Rackable Systems, a California-based provider of servers and storage products, on Wednesday agreed to pay 25 million U.S. dollars in cash to acquire most assets of Silicon Graphics, a former Silicon Valley star company.

    The combined businesses will provide customers with market leading hardware and software technology as well as forming a stronger global services organization, the two sides said in a joint statement.

    Silicon Graphics, founded in 1982, became famous in the 1990s as the top producer of computer-generated special effects for some Hollywood blockbusters such as "Jurassic Park."

    It then went downhill as rivals came up with cheaper products. In May 2006, the company filed for bankruptcy protection from which it emerged five months later.

    Silicon Graphics on Wednesday filed for bankruptcy protection for the second time in a New York court.

    Subject to approval of the bankruptcy court and other conditions, Rackable Systems' acquisition of Silicon Graphics is expected to close within about 60 days.

    Silicon Graphics said its international operations would be part of the sale, but would not be part of the bankruptcy process.