Silicon Graphics sells Alias business15 Apr, 2004 By: Cadalyst Staff
Silicon Graphics has sold its Alias software business to Accel-KKR, a private equity firm that focuses on technology. Purchase price is $57.5 million in cash, and SGI expects to realize $50 in net proceeds after working capital adjustments and transaction costs. Under the new ownership, Alias will operate as an independent company, with no changes to its management team. Sales of its entire product suite will continue. Alias develops the Studio Tools suite of industrial design software and Maya, a 3D modeling and animation product.
"Our plan is to accelerate investment in the product and service areas that provide the greatest payback for our entertainment and design customers," said Doug Walker, president of Alias. "Our new partnership with Accel-KKR will facilitate this activity, providing long-term patient capital and other strategic resources to help us thrive as an independent enterprise."
The Alias business generated revenues of $51.8 million and an operating profit of $4.9 million for the nine months ended March 26, 2004. SGI previously announced plans to divest the Alias business to focus on its core business--Linux-based high-performance systems.