DigiTimes reports Gateway has sold its Professional business unit to MPC Corporation for $90 million.
As part of the transaction, MPC will assume responsibility for all operations and warranty support associated with Gateway's Professional business, valued at approximately US$60 million. In addition, Gateway will invest approximately US$10 million in MPC in the form of a note issuance tied to excess inventory at the GCC. Gateway will receive a 19.9% equity stake in MPC Corporation at the close of the transaction. As part of the transaction, Gateway will take an impairment charge of approximately US$16 million predominantly related to IT assets associated with the Professional business.