Posted by: lsinrc | October 1, 2007

eSchoolNews: More changes at Gateway Computer

eSchoolNews explains how Idaho-based MPC is set to take over Gateway’s professional business unit in a deal that closely follows Acer’s acquisition of Gateway’s consumer business:
eSchool News online – MPC acquires Gateway’s school business

Just days after Taiwanese computer maker Acer Inc. announced plans to acquire Gateway Inc. for $710 million, Gateway’s school customers learned they will have a new supplier for sales, service, and support: Gateway has agreed to sell its professional business unit to Nampa, Idaho-based MPC Corp. in a separate, $90 million deal.

Under the deal, MPC Computers–a wholly owned subsidiary of MPC Corp.–will take responsibility for operations and warranty support services at Gateway’s professional business division, which sells computers and other services to education, commercial, and government customers.

“We believe that the customers of MPC and Gateway’s professional business will benefit greatly from this combination,” said John P. Yeros, chairman and CEO of MPC Corp.

“The new company will be totally focused on the markets of government, education, and small-and-medium business, and it will develop products and services to meet the specific needs of these customers. 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 combined revenues of the two businesses in 2006 were $1.2 billion, MPC said, which will make MPC one of the top computer companies in the U.S. targeting the professional markets of business, education, and government when the deal closes in early October.

MPC said it will continue to offer Gateway Professional products in the short term but will move branding from the Gateway name to the MPC brand within a year.

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