alias to be sold? News from Reuters.

Alias may be sold, read the news…
Shows you how small Alias really is, 60 million dollars in sales per year roughly if they do 18 million in a quarter

SGI in talks to sell Alias graphics business
Wednesday February 11, 5:01 pm ET

NEW YORK, Feb 11 (Reuters) - Specialized-computer maker Silicon Graphics Inc. (NYSE:SGI - News) said on Wednesday it was in talks to sell its Alias graphics technology and services business in a move to focus more closely on its core computing and storage business.

Silicon Graphics, which makes high-end computers used by defense contractors and Hollywood studios, said it was in exclusive talks to sell Alias to an unnamed private equity investment firm. The terms of a possible deal were not disclosed.

Alias, which provides 3D graphics technology and services for industries such as film, video, games, and industrial design, would operate as an independent company if the transaction was completed as expected, Silicon Graphics said.

Shedding Alias would continue the company’s strategy of narrowing its focus to products such as a computer based on the Intel Corp. (NasdaqNM:INTC - News) Itanium 2 microprocessor and running the increasingly popular Linux operating system.

Sales of Alias’ entire product line would continue and there would be no changes to the management team, service and support or product availability due to the negotiations or sale of the business, Silicon Graphics said.

For the second fiscal quarter ended Dec. 26, Alias had revenues of $18.4 million, compared with Silicon Graphic’s total revenues of $237.9 million.

Shares of Mountain View, California-based Silicon Graphics gained 40 cents, or 11.8 percent, to close at $3.80 on the New York Stock Exchange (News - Websites) on Wednesday.

well they a Montreal software company that was just bought out a few years ago (like less than 5) by SGI.
So it doesn’t seem like such a big deal that they are up for sale again.
it’s too bad though, since it means that they might get bought up by a competitor and cannibalized then dropped.

Accel-KKR To Acquire Alias From SGI
Alias continues to pioneer innovative 3D software and services to entertainment and design customers
Menlo Park, CA and Toronto, Ontario, April 15, 2004 – Accel-KKR and Alias®, a Silicon Graphics Inc. (NYSE:SGI) company, today announced a definitive agreement with SGI® under which Accel-KKR, with participation from the management of Alias, will acquire Alias from SGI for $57.5 million USD. Alias is the leading provider of 3D graphics technology and services for the film, video games, web, interactive media, automotive, industrial design, education and visualization markets. Accel-KKR is a technology-focused private equity firm. “This exciting new partnership enables Alias to enhance its position as the innovation leader in 3D software,” said Doug Walker, President of Alias. “Our plan is to accelerate investment in the product and service areas that provide the greatest payback for our entertainment and design customers. 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. We believe Alias is uniquely positioned to lead and drive future innovation and, at the same time, make 3D technology more accessible to both professionals and consumers. The breadth of applications for this category of software is enormous.”

Ben Bisconti, Managing Director of Accel-KKR, said, “We are delighted to be pursuing this opportunity with the management team of Alias. As an independent company, Alias will be in an even better position to capitalize on growth trends in the market and lead the industry in new and exciting directions.”

Tom Barnds, Managing Director of Accel-KKR, added, “We look forward to joining with management in continuing to grow the company and deliver outstanding products and services to Alias’ customers. The leadership and vision of Doug Walker and his team have made Alias the leading player in a very attractive market space – with a premier brand name, award-winning products and a blue-chip customer base.”

“Now more than ever, Alias is solidly positioned to deliver breakthrough product innovation matched with incredible solutions and support. The first return on this investment will be to our current and future customers, in both the entertainment and design markets,” said Dave Wharry, Vice President of Global Sales and Marketing, Alias. “We now have a new financial partner who is aligned with our strategic direction which makes us an even stronger competitive force in the market.”

The sale is expected to close this quarter.

This press release contains forward-looking statements relating to the sale of Alias by SGI. This transaction may not occur or may occur on terms substantially different from those described in this press release. For a discussion of risk factors relevant to SGI’s businesses, please refer to SGI’s periodic reports that are filed with the Securities and Exchange Commission.

About Alias
As the world’s leading innovator of 3D graphics technology, Alias develops award-winning software, custom development and training solutions for the film and video, games, web, interactive media, automotive, industrial design, education and visualization markets. On March 1, 2003, for the awards year 2002, the Academy of Motion Picture Arts and Sciences awarded Alias|Wavefront™ an Oscar® for scientific and technical achievement for the development of Maya® software, the professional 3D animation and effects package. Alias also offers a powerful range of services for new to advanced users in the most demanding environments. Learning Tools and training, support, and professional services help meet rigorous production deadlines.

Entertainment customers include: Acclaim Entertainment, Inc., CNN, Digital Domain, Disney, Electronic Arts, Industrial Light & Magic, Factor 5 LLC, Midway Games, Nintendo, Pacific Data Images (PDI), Pixar, Sega, Sony Pictures Imageworks, Square Co., Ltd., Warner Feature Animation and Weta Ltd. Design customers include AT&T, BMW, Boeing, Fiat, Ford, General Motors, Honda, Italdesign, Kodak, Kwikset, Mattel, Price Pfister, Renault, Rollerblade, Sharp, Trek Bicycle, Teague and Timex.

Alias is a wholly-owned, independent software company of SGI with headquarters in Toronto and a Custom Development Center in Santa Barbara. Please visit the Alias website at or call 1-800-447-2542 in North America. International contact numbers include: Northern Europe, Middle East and Africa, +44 (0) 1494 441273; Germany, East & Southeast Europe, 0049 89 31 70 20; France, Spain and Portugal, +33 1 44 92 81 60; Italy, 39 039 6340011; Japan and other parts of Asia Pacific, 81 3 5797 3500, and Latin America, 770 393 1881.

About Accel-KKR
Accel-KKR is a technology-focused private equity investment firm founded by venture capital firm Accel Partners and private equity firm Kohlberg Kravis Roberts and Co. Accel-KKR invests primarily in technology companies with between $25 million and $150 million in revenue. Accel-KKR prefers majority ownership positions and investment opportunities in which it can contribute to the creation of long-term shareholder value. At the core of Accel-KKR’s investment strategy is a commitment to developing strong partnerships with the management teams of its portfolio companies.

“Menlo Park, CA and Toronto, Ontario, April 15, 2004