HyperSpace to Acquire MPC Computers

 
 
By Paula Musich  |  Posted 2005-03-21 Email Print this article Print
 
 
 
 
 
 
 

The deal will combine a small software company with a PC and server manufacturer.

Application acceleration provider HyperSpace Communications Inc. on Monday said it has agreed to acquire MPC Computers LLC in a deal valued at at least $16 million. The unique combination of a small software company that provides server-based HTTP compression and a much-larger PC and server manufacturer is intended to yield value for both operations, according to HyperSpace Chairman and Founder John Yeros.
"There are synergies in the ability to distribute our products through the MPC network of salespeople and their PCs and their servers. This gives them a public vehicle to the capital market to finance own plans. It improves their financial structure and gives them the ability to grow," said Yeros.
The total value of the deal will not be decided until it closes sometime in mid-summer. It calls for HyperSpace to issue 4.3 million shares of its common stock for all of the outstanding limited liability units in MPCs parent, Gores Technology Group PC Holdings, LLC—along with warrants to buy 5 million shares with an exercise price of $3 per share and 1.5 million shares with an exercise price of $5.50 per share. HyperSpace shares closed Monday at $4.20 per share.
The small software company is acquiring the $400 million computer maker, owned by Gores Technology Group. Gores Technology, known as a turnaround company that "buys distressed divisions of public companies," acquired MPC from Micron Technologies four years ago, according to Yeros. MPC, which has 130 sales people, manufactures 50,000 units a year of PCs, laptops, desktops and servers. Its 800 employees will remain in its existing facility in Nampa, Idaho. HyperSpace intends to bundle its Web application acceleration software—dubbed HyperWeb and HyperTunnel—in the MPC offerings. MPC markets its computers to midsize enterprises, educational institutions and state and local governments. Read more here about MPC Computers targeting government and midmarket customers. Although it is unclear what the management structure will be for the combined companies, MPC President and CEO Mike Adkins will remain in that position. Mark Endry, HyperSpaces president and CEO, will remain at the software companys helm. Check out eWEEK.coms for the latest news, reviews and analysis about productivity and business solutions.
 
 
 
 
 
 
 
 
 
 
 

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