Penguin Computing acquired by SMART
SMART Global Holdings has announced that it has acquired Penguin Computing. Penguin is a privately held company and a leader in speciality compute and storage solutions targeting applications in Artificial Intelligence (AI), Machine Learning (ML) and High Performance Computing (HPC) using state-of-the-art, open technologies and advanced industry architectures. Penguin’s compute and storage solutions are also available on a secure cloud infrastructure.
Penguin will continue as a standalone operation being the first part of a new business unit, SMART Specialty Compute and Storage Solutions (SCSS), which will benefit from shared infrastructure and the ability to leverage the products and capabilities of SMART’s Specialty Memory business unit into the emerging AI and ML markets. The acquisition of Penguin and the creation of SMART SCSS will serve as a broad platform on which SGH can further build.
‘We are pleased to be embarking on the first acquisition of our strategy to broaden the reach and capabilities of SMART into new technologies, markets and channels that leverage our proven platform of integrating and growing businesses,’ commented Ajay Shah, Chairman and CEO of SMART Global Holdings. ‘Penguin brings an outstanding customer base, solid products and strong supplier relationships to SMART in the speciality compute, storage and networking markets.’
Tom Coull, CEO of Penguin, stated, ‘We are looking forward to becoming a part of the SMART family of global companies and will continue to deliver Penguin branded high quality, cost-effective, purpose-built servers, storage and networking solutions for our customers. With this new platform, Penguin will have substantially improved access to capital to drive additional investment in, and further development and growth of our product and services offerings. Based on all of the benefits that we anticipate from this transaction, we expect that our customers and suppliers will be supportive of the transaction.’
SMART has agreed to acquire Penguin for up to $85 million, which includes up to $25 million of performance-based payments that are made only if certain agreed-upon targets are achieved.
KKR Credit provided the debt financing for this transaction.