MPC enters HyperSpace
- By Michael Hardy
- Mar 22, 2005
MPC Computers, which supplies desktop computers and other hardware to government organizations, has agreed to be acquired by HyperSpace Communications. HyperSpace specializes in software products aimed at speeding up Internet performance.
While the fit between the two firms may not be obvious at first, HyperSpace president and chief executive officer Mark Endry said that the combination of the two will create a diversified technology firm. HyperSpace will take advantage of MPC's existing sales channels to market the software products, he added.
HyperSpace is best known for HyperWeb and HyperTunnel, and Endry said the acquisition will give those products "immediate visibility" in the government, education and enterprise sectors where MPC is strongest.
MPC officials believe that adding HyperSpace's products to the MPC's hardware offerings will make the combined company a more powerful force, said Michael Adkins, MPC's president and CEO. "By offering customers a broader set of products, we address a growing trend among technology-intensive organizations to do business with fewer vendors in order to improve their efficiencies and customer experiences," he said in a written statement.
The transaction still must be approved by HyperSpace shareholders. MPC is a private firm. Under the deal, HyperSpace will issue 4.3 million shares of common stock to MPC's parent firm, GTG PC Holdings, along with warrants to purchase 5 million shares at $3 per share and 1.5 million shares at $5.50 per share.
Technology journalist Michael Hardy is a former FCW editor.