Micron PC and government units sold to buyout firm -- GCN

Micron PC and government units sold to buyout firm

May 02, 2001

By Susan M. Menke

GCN Staff

MAY 2—Gores Technology Group, a private investment firm in Los Angeles, has announced a purchase agreement for the PC manufacturing and government systems units of Micron Electronics Inc. of Nampa, Idaho.

Harry Heisler, vice president and general manager of Micron Government Computer Systems, said federal users of Micron hardware would see no change in their contract status and performance. 'We are certainly sticking around,' Heisler said. He said he expects Gores management to provide arms-length support to the government and PC units, which Micron Electronics paid $70 million to spin off to Gores.

Heisler described Micron as 'at best ambivalent and at times downright hostile' to the government market and said the company 'wanted to get out.' The new owners 'recognize that their single biggest customer is government, and Micron PC will be a more government-centric business.'

The spun-off company will continue to operate from its Idaho facilities. See www.micronpc.com for more information.

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