Silicon Graphics Sells Alias Software Business

Enterprise Networks & Servers, May 2004

Silicon Graphics reached a definitive agreement in mid-April for the sale of its Alias graphics software business to Accel-KKR, a technology-focused private equity investment firm, for $57.5 million in cash. The Alias subsidiary had been on the market since February.

Under the new ownership structure, Alias will operate as an independent company.

Sales of the entire Alias product suite will continue uninterrupted, and there will be no changes to the management team, service and support or product availability as a result of the sale.

"The sale of our Alias business unit is another step in our long-term program of focusing on our core systems business," said Bob Bishop, chairman and CEO of SGI. "We're applying our full attention to build momentum in Linux-based high-performance systems, and we are pleased that under new ownership, Alias will also be in a position to continue its tradition of industry-leading innovation in its core business."

"Alias is proud of its association with SGI for the last eight years," said Doug Walker, president of Alias. "During that time Alias has served its customers by delivering the industry's most innovative products and services. Moving forward we will continue this tradition with even more focus and intensity."

The Alias business had revenues of approximately $51.8 million and an operating profit of approximately $4.9 million for the nine months ended Mar. 26, 2004.