MPC bids for Gateway's Professional
- By Patrick Marshall
- Sep 05, 2007
While Taiwan-based Acer is moving to acquire the majority of California-based computer maker Gateway, a smaller slice of Gateway looks like it will stay closer to home. Idaho-based MPC is in the process of acquiring Gateway's Professional business.
Under the deal, which is subject to regulatory approval, MPC will pay approximately $90 million and will raise an additional $9 million to take over Gateway's line of business that services education, medium-sized businesses and government customers. According to MPC, the combined revenue of MPC and Gateway's Professional business in 2006 would have been $1.2 billion.
"The new company will be totally focused on the markets of government, education and small-and-medium business, and will develop products and services to meet the specific needs of these customers,' said John P. Yeros, chairman and chief executive officer of MPC, in a press release. 'It will have the scale to enable it to compete better against larger rivals in the PC industry. In addition, our customers will gain access to a wider range of PC products and services and continue to enjoy high-quality, U.S.-based service and support."
The acquisition is expected to close early in fourth-quarter 2007.
Patrick Marshall is a freelance technology writer for GCN.