The Austin, Texas-based server start-up will now operate as a wholly owned subsidiary of Sanmina-SCI and continue its focus on the development of servers based on Advanced Micro Devices Inc’s 64-bit Opteron processor.

Founded in 2000 and privately owned until now, Newisys was one of the first server developers to announce support for Opteron, which offers native support for 32-bit applications to ease the move to 64-bit computing. The company’s innovation and focus on Opteron has caught the eye of established servers vendors such as IBM Corp and Dell Computer Corp, which are rumored to be considering reselling the Newisys servers.

Such a forthcoming reseller deal may well have been what caught the eye of San Jose, California-based Sanmina-SCI, a contract manufacturer of PC, server and storage, communications, defense and aerospace, medical, automotive and industrial systems.

Among the company’s client list is IBM, which outsourced the manufacture of the majority of its xSeries servers and IntelliStation workstations to Sanmina-SCI in a three-year, $3.6bn deal in January 2003. The company also struck a similar three-year, $5bn deal with IBM for the manufacture of its NetVista desktop PCs in 2002.

Source: Computerwire