SGI Sells Alias Subsidiary to Accel-KKR

dmehus writes "SGI on Thursday announced it has agreed to sell its Alias subsidiary for $57.5 million in cash to Accel-KKR. Interestingly enough, Accel-KKR owns GroceryWorks, which powers and provides the online version of Safeway. After transaction costs and other items, SGI said it expects net proceeds from the sale come in line at $50 million. Slashdot covered this story in February, saying that SGI was rumoured to be in talks with an unnamed private equity firm, but now it is confirmed."

Comments

Whats the future of SGI now?

[Viol8]

Is this a futile attempt at selling off the family silver in an effort to keep their failing business solvent or is it some shrewd move to raise cash for more profitable enterprises?
Is SGI a lost cause or is there life in it yet?

Re:Whats the future of SGI now?

[Anonymous Coward]

They've been stumbling round like an extra from Dawn of the Dead for the last five years, just waiting for someone to finally pull the trigger.


"Get the one who looks like Burt Reynolds"

KER-PING! SPLAT! THUD!

"Get the one who looks like a viable high-end computer company"

KER-PING! SPLAT!


Just waiting for that final THUD...!

Why is this company buying Alias?

[ScottGant]

I mean, I could see a FX company buying it...but an investment firm that handles grocery technology and coal services?

I'm sorry, but it brings to mind that back in the 70's when AMF bought Harley-Davidson...and look at THAT fiasco.

Shame,

[xirtam_work]

I had almost expected Apple to buy the rights to Alias. The Mac OS X version rocks, and they've got billions in the bank, $50m would have been pocket change. It could have complemented Shake and Logic, bring 3D into their professional tools. And then we could have looked forward to iModel, or whatever, as the low end consumer version.

Ah well, wasn't to be.

Re:Shame,

[rampant mac]

"And then we could have looked forward to iModel, or whatever, as the low end consumer version."

That's sort of pushing it, don't you think? I mean, the applications in the iLife suite are consumer applications that "most" consumers actually use.

Digital camera? Hell, my parents owned one before I finally broke down and purchased mine. iPhoto works great for me.

Digital camcorder? I don't have one, but someday. iMovie would fit the niche perfectly.

Music? iTunes works like a charm (so much, in fact, that I couldn't see using anything else!).

iDVD is there to tie each of those separate applications into media that can easily be shared with friends and family.

GarageBand is really nice, but lacking features for anyone beyond intermediate musical talent. If there was a teenager in the house, it would probably be the most used application, though.

But, "iModel?" Where would that really fit into the digital hub? I honestly don't know too many people interested in 3D modeling on a consumer level.

Re:Open Maya?

[symbolic]

I don't have a problem with the C++ part, but I do have a problem with the implementation - it seems like the interface was designed around the programming, rather than the other way around. No where else have I see a "bend" function, and a "bender" object. This duality permeates much of the functionality, and I just can't seem to figure out why the distinction is even necessary.

Re:The price is very low

[voodoo1man]

Alias/Wavefront's Maya package is the leading product in the high-end animation industry today, having displaced Softimage.

And how large is that market really? I was under the impression that the US 3d animation industry has largely been in decline for the past four years (at least it seems that way from the layoffs and closings of the large studios, and things I've heard and read).

Arguably, it's SGI's most successful business.

I've heard that it's SGI's most publicly visible business, but that SGI makes most of their money from selling computers to the government.

Why didn't Apple buy them?

[theolein]

That amount of cash would have been peanuts for Apple and Apple would finally have something in the 3D segment of the market.