Gateway to Sell Professional Business Unit

Gateway Inc., a struggling computer maker, said Wednesday it will sell its professional business unit to Nampa, Idaho-based computer maker and seller MPC Corp. in a deal valued at about $90 million. MPC will continue to offer Gateway Professional products but will move branding from the Gateway name to the MPC brand within a year. This news follows on an announcement last month where Gateway announced that it was being acquired for $710 million by Acer Inc. of Taiwan.

Under the deal announced today, MPC will take responsibility for operations and warranty support services at Gateway's professional business unit. Gateway will get a 19.9% stake in MPC after the deal closes. As part of the agreement, MPC said it will issue a promissory note to Gateway with a principal amount of about $10 million as of last Tuesday, payable to Gateway within six months of the deal's closing, with a final value based on factors such as the amount of inventory Gateway delivers when the deal is completed. The companies expect the transaction to close in the fourth quarter.

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10 Comments

Why won't Gateway just die. Their company has gone down the ****** because they make such bad computers. Every year I see a new tablet PC model. They use these over at my school and they ALWAYS have problems, always crash or need part replacements...meanwhile I use my macbook pro and havn't had 1 problem in 2 years.

Gateway used to be good 6-8 years ago when they had all the gateway stores around. After they got rid of the cow boxes they basically went downhill for some reason...

It's sad to see a company that used to have a close relationship with it's customers go under.. ie Packard Bell. The founder gave up, but we thank Grandma Waitt for giving us a few years of competition when buying a computer.

The only ones left are Acer, Dell, HP and those who build their own machines.
Acer owns Gateway & Emachines
Dell owns Alienware
HP owns VooDoo

Falcon NW is next?

PaulNC said,
:( It's sad to see a company that used to have a close relationship with it's customers go under.. ie Packard Bell. The founder gave up, but we thank Grandma Waitt for giving us a few years of competition when buying a computer.

The only ones left are Acer, Dell, HP and those who build their own machines.
Acer owns Gateway & Emachines
Dell owns Alienware
HP owns VooDoo

Falcon NW is next?

Don't be surprised; then again, less vendors mean greater standardisation which means improved hardware support - it'll help Microsoft as well as alternative hardware vendors.

kaiwai said,

Don't be surprised; then again, less vendors mean greater standardisation which means improved hardware support - it'll help Microsoft as well as alternative hardware vendors.


Then again it means less competition, more sweet heart deals with the manufactures and big business and we all know what road that leads down.

xtravgnt said,

Then again it means less competition, more sweet heart deals with the manufactures and big business and we all know what road that leads down.

I guess I have to agree with xtravgnt. Fewer vendors don't always result in standardization. It usually means a war of standards. In any event, the best to Acer and Gateway.

xtravgnt said,

Then again it means less competition, more sweet heart deals with the manufactures and big business and we all know what road that leads down.

There are no standards being followed now; how will more competition result in the standards being followed in the future? Look at ACPI and the amount of garbage put out by motherboard companies, as one example.

kaiwai said,

Don't be surprised; then again, less vendors mean greater standardisation which means improved hardware support - it'll help Microsoft as well as alternative hardware vendors.

How is that going to make for greater standardisations? Now, it will either be do it my or hit the highway!

Actually, Gateway's Professional Business Unit is the former Advanced Logic Research (ALR), who was a member of the infamous Gang of Nine that backed the EISA extended-bus specification against the VESA-backed VL-Bus specification back in the days of the 80486DX. And Acer is *buying* Gateway (which has already purchased eMachines); however, the Acer/Gateway deal hasn't closed yet. Alienware and Voodoo are more like separate subsidiaries of Dell and HP, respectively (as opposed to Compaq, which HP swallowed entirely). Also, Alienware is now in markets that would have been unheard-of prior to their deal with Dell (I mean, seriously, would you expect to see *Alienware* on the GSA Schedule 70 - the IT Schedule?). The Acer Group is a multinational (and non-US-based) comglomerate with IT as their primary focus (but they also have products outside of IT); HP didn't even *start* with computers; in the 1960s and 1970s, their largest business was electronics equipment intended for technicians and schools that trained them (I remember having an HP oscilliscope on my test bench in high-school electronics in 1976). HP's largest competition was Tektronix of Beaverton, OR (also in the mix was Schlumberger, of Heathkit fame); HP got into computers via the back door; specifically, their calculator business (in competition with Texas Instruments). Velocity Micro is still around (though they are now a subsidiary of Best Buy).

How old are you PGHammer?

Actually, I didn't know about the ALR issue. Who was the Gang of Nine?

While I do appreciate the subtle differences between the Compaq "consumption" by HP and the annexation of Alienware and VooDoo, what does it mean for gaming boxes to have slipstreamed access to GSA Schedule. What agency would have a "need" for a gaming box? Dell couldn't make them a comparable machine?... Then again, maybe Alienware makes uber high end boxes for folks at ILM??

The Weather Service, Dept. of Energy, Census Bureau and NASA get industrial grade stuff from Sun, IBM and Cray?

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