Distressed deals have been on the rise, numbers from The Deal Pipeline show. One of those transactions corporate dealmakers may find interesting involves server maker Rackable Systems Inc., which had only eight days last month to close its $42.5 million acquisition of computing legend Silicon Graphics Inc., which it bought out of bankruptcy.
Our senior tech reporter on the West Coast, Olaf de Senerpont Domis, took a look at how managers of the enlarged company were rolling up their sleeves to figure out exactly how to gain the most advantage,
both strategically and financially, for the former Rackable (it's now named Silicon Graphics International Corp.). Hastened by the bankruptcy process, the deal came together at a blinding pace and forced Rackable to make quick decisions.
Rackable makes servers and storage for the data centers, a sector where big tech players are making significant moves. EMC Corp. (NYSE:EMC) chief executive Joseph Tucci said Oracle Corp.'s (NASDAQ:ORCL) $7.4 billion acquisition of Sun Microsystems Inc. (NASDAQ:JAVA) raised the stakes in the
battle for control of the corporate data center market. -
Baz HiralalGo to The Deal magazine feature on Rackable
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And the winners are...
