SGI acquires Linux Networx, Gemfire buys Covega

SGI has acquired the assets of competitor Linux Networx, a heavily funded Salt Lake City company that works in the high-performance computing field for Linux-based computers.

The acquisition is quite the turnaround for Sunnyvale-based SGI, which declared bankruptcy in late 2006 and has since been making a recovery. The company made a stock transaction for Linux Networks, which had raised $90 million from Oak Investment Partners, Lehman Brothers, Canaccord Adams and Tudor Ventures.

In a separate transaction, Gemfire earlier this week acquired Covega, a Columbia, Maryland maker of optical devices, for an undisclosed amount.

Gemfire was not a competitor to Covega, which makes equipment for telecommunications, medical and defense industries and was funded by New Enterprise Associates, Boulder Ventures, EDB Ventures and Kinetic Ventures. Gemfire is based in Fremont, Calif.

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Tags: deal