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Sanmina-SCI Corporation, a global Electronics Manufacturing Services (EMS) company, announced that it has entered into an agreement to acquire Newisys, Inc., a privately held developer of enterprise-class servers for global technology companies. Terms of the agreement were not disclosed, however, according to unofficial sources, Newisys' venture investors and employee shareholders actually made money. The principal closing conditions have been satisfied and the acquisition is expected to close in the next several business days.

Newisys is based in Austin, Texas and became quite famous after it has announced server solutions, based on AMD Opteron processors, will become a wholly-owned subsidiary of Sanmina-SCI and will add a strong competency and expertise in developing enterprise-class server technology, including non-disruptive transition from 32-bit to 64-bit computing.

Randy Furr, Sanmina-SCI President and Chief Operating Officer said that acquisition of Newisys will strengthen his company position on the enterprise computing and storage systems market segments. Furr hopes that Newisys will perfectly fit into recently-implemented Sanmina-SCI's Customer Focus Strategy and will provide additional ability for company to develop easy-to-deploy ODM solutions.

"The acquisition of Newisys gives Sanmina-SCI additional skills that will help them deliver enterprise-quality server design," said Bob Moffat, Senior Vice President, Integrated Supply Chain, IBM Corporation. "This is an important capability for electronics manufacturers to have in today's marketplace." I have to admit that Sanmina-SCI definitely need some push, since it sustained heavy loss during past years.

Newisys' capabilities in AMD Opteron-based 64-bit server technology, symmetric multiprocessing, and remote management distinguish it as one of the leaders in standards-based, high performance server design for an array of applications. Additionally, the company's experience in ASICs, chipsets, BIOS, software, and systems management will augment Sanmina-SCI's ODM solution offerings for enterprise computing and storage OEMs.


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