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Gateway to Sell Unit to MPC for $90 Million
Dan Nystedt, IDG News Service
Gateway Inc. has agreed to sell a unit targeting education, medium sized business and government users to MPC Corp. for US$90 million, the companies said Wednesday.
MPC, of Nampa, Idaho, plans to combine the unit with its own operations to grow. The combined revenue of MPC and Gateway's Professional division would have been $1.2 billion last year, MPC said in a statement.
MPC will gain a PC assembly facility in Nashville, Tennessee, as well as a portion of Gateway's Consumer Direct business, the companies said. The company will also immediately assume responsibility for all operations and warranty support associated with the Gateway unit.
The deal is expected to close early in the fourth quarter of this year.
Acer Inc. announced last week it would acquire Gateway for $710 million. At the time, the companies said Gateway was in the process of selling off its professional business.
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