INDUSTRY

Penguin Computing, the leading Linux server company, announced today that it has signed a definitive agreement to acquire privately-held Scyld Computing Corporation. Scyld is the technology leader in Beowulf cluster management software, which enables scaleable and manageable high-performance computing clusters using Intel and AMD based servers. Scyld will maintain its own brand as a software division within Penguin Computing and will continue to operate from its East Coast office. Under the terms of the agreement, privately-held Penguin Computing will issue shares of Penguin stock in exchange for all of the outstanding securities of Annapolis, MD-based Scyld Computing. Sam Ockman, founder and CEO of Penguin Computing, will lead the combined companies as president and CEO. Donald Becker, former NASA scientist, early Linux networking developer, founder of Scyld, and key developer of the Beowulf software technology, will serve as the Chief Technology Officer. The merger will make Penguin Computing the definitive provider of Linux-based high-performance computing solutions. Customers will be able to choose from a wide array of highly-configurable server building blocks, advanced cluster management software and a wide range of technical consulting services to meet their specific application requirements and budgets. End users worldwide will benefit from the companies' combined product breadth and unmatched technical expertise. "Don Becker pioneered Beowulf clustering under Linux in 1994 and has been one of the industry's staunchest advocates," said Sam Ockman, president and CEO of Penguin Computing. "Over the past four years, Scyld has invested aggressively in the development of its software and has earned a strong reputation in the Beowulf clustering market. The Scyld software reduces the complexity of provisioning and managing a Beowulf cluster to that of administering a single Linux workstation." "Our software addresses Beowulf users' dual concerns of cluster manageability and scalability. Our technology brings both better performance and greater ease of use, whether your cluster is made up of eight computers or over 1000," said Don Becker, CTO of Scyld. "For most applications we'll soon be able to offer an extremely compelling alternative to traditional monolithic supercomputers." Both companies have received support from the venture capital community. Lead investors in Penguin Computing include ING Capital LLC, a subsidiary of ING, and Dragon Venture. Bob Young, co-founder and former Chairman and CEO of Red Hat (NASDAQ: RHAT), is an investor in Scyld Computing.