Gateway sells professional business segment to MPC

Posted on Friday, Sep 07 2007 @ 05:08 CEST by Thomas De Maesschalck
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.

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Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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