HyperSpace acquires Top 100 PC maker
- By Nick Wakeman
- Jul 27, 2005
HyperSpace Communications Inc. has completed the acquisition of PC maker MPC Computers LLC in an all-stock deal.
The deal was announced
in March when HyperSpace of Denver agreed to issue 4.3 million shares to acquire MPC from Gores Technology Group of Los Angeles.
HyperSpace also agreed to issue warrants for the purchase of 5 million shares with an exercise price of $3 and 1.5 million shares with an exercise price of $5.50.
On July 26, the day the deal was completed, HyperSpace's stock closed at $6.60 a share.
MPC, which ranks No. 39
on Washington Technology
's 2005 Top 100
list, is a computer maker based in Nampa, Idaho. HyperSpace is a small, publicly traded maker of application accelerator software. MPC will continue to operate under its own name and will be a wholly owned subsidiary of HyperSpace.
Mike Adkins, MPC chief executive officer and president, will continue in that role running MPC.
In 2004, MPC had about $428 million in revenue, with a loss of about $6.2 million. The company has 800 employees. HyperSpace, which has 15 employees, had revenue of $132,000 in 2004 with a loss of $996,000.
Gores Technology Group is only taking stock as consideration in the deal because it sees a long-term benefit of the HyperSpace-MPC combination, Adkins said in an earlier interview with Washington Technology
"The upside is greater for [Gores] than if they had maintained ownership of us," he said.
Nick Wakeman is the editor-in-chief of Washington Technology. Follow him on Twitter: @nick_wakeman.