MPC has completed its acquisition of Gateways professional division. The deal was originally announced about a week after Acer said Aug. 27 that it would buy the majority of Gateways business for $710 million.
On Oct. 2, Reuters reported that Acer, headquartered in Taiwan, would extend its offer until Oct. 10 to allow U.S. regulators additional time to review the deal.
On Oct. 1, MPC executives announced they had completed the $90 million deal for Gateways line of professional products, which includes PCs, servers and storage specifically geared for vertical markets such as education and government.
The deal also means that MPC, of Nampa, Idaho, will acquire part of Gateways Consumer Direct business, which sells products to small businesses with fewer than 100 employees. In addition, MPC acquired Gateways Nashville, Tenn., assembly plant.
Now that MPC has fully acquired the division, all Gateway Professional employees will join MPC and work out of the units current headquarters in North Sioux City, S.D. Over the next year, MPC will begin rebranding all of the products in the Gateway portfolio with its own name.
While the Acer deal is expected to increase that companys presence in the U.S. consumer market and add to its worldwide PC market share, MPCs acquisition of Gateways professional division will help increase its presence in small and midsize business markets, as well as in the specialized vertical markets that Gateway had been targeting for years.
When Acer completes its deal for the rest of Gateway, the acquisition will mark the end of one of the most significant PC vendors of the 1990s. Before it fell on hard times after 2000, Gateway, based in Irvine, Calif. had a market value of more than $1 billion.