MPC to buy Gateway business unit

MPC Corp. is planning to buy Gateway's Professional in a deal worth about $90 million. The move will strengthen MPC's federal and state and local sales as well as its business in the education market.

MPC's annual revenue will reach about $1.2 billion after the acquisition, the Nampa, Idaho-based company said. Gateway's Professional targets customers in education, medium-sized business and government with customized products including PCs, peripherals and services.

The acquisition will allow MPC to put more emphasis in mobile computing, all-in-one desktops, servers and storage solutions. MPC will make Gateway's Professional products available to its customers, but as part of the terms of the acquisition, MPC will migrate these products from the Gateway brand to the MPC brand within a year of the acquisition closing.

MPC also will take over Gateway's leased final assembly facility in Nashville, Tenn.

Acer Inc. is buying the rest of Gateway and will continue to manufacture and sell computers under that name, mostly in the consumer market.

About the Author

Nick Wakeman is the editor-in-chief of Washington Technology. Follow him on Twitter: @nick_wakeman.

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