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[Posted on October 5, 2006 - 7:20 PM]

Only a few months after announcing its first ever acquisition, Rackable Systems is looking again. Speaking at The Deal's Silicon Valley Summit, Rackable CEO Thomas Barton said the server and storage hardware maker is looking to expedite its entry into overseas markets via acquisition.

Barton said one of the reasons is to gain the tax benefits that would come from funnelling some its revenue through an overseas location with a lower tax rate than the United States. He added that Rackable's North American customers are already pulling the company outside the United States because of their overseas hardware needs.

As it looks overseas, Rackable won't make any purchases in the storage arena for a while as it spends its energy integrating TerraScale and pushing its product to market. Barton hopes Terrascale's storage product will boost the company's overall margins by 1.5%.

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Thomas Barton at The Deal's Silicon Valley Summit

For more on The Deal's Silicon Valley Summit, see:
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Brian Ward

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