Dell to acquire Alienware
Dell has agreed to purchase gaming PC maker Alienware, in a rare acquisition designed to improve Alienware's supply chain and boost Dell's standing among PC enthusiasts. Financial terms of the deal were not disclosed. Alienware will operate as a wholly owned subsidiary of the world's largest PC maker, said Nelson Gonzalez, chief executive officer of Alienware. Gonzalez will now report to Jim Schneider, Dell's chief financial officer, but the company will operate separately from Dell, he said.
There will be no cross-marketing of Dell and Alienware PCs on their respective Web sites, at least initially, said Jess Blackburn, a Dell spokesman. Some Dell-branded products that Alienware doesn't sell, such as monitors, might be sold on Alienware's site, but that hasn't been finalized. The deal gives Dell a chance to tap into the profitable high-end PC gaming market, Blackburn said. The purchase is not material to Dell's finances, he said. Alienware had considered raising capital through an initial public offering, but came to realize that being acquired by Dell would allow it to raise more money and to take advantage of Dell's supply chain and procurement expertise, Gonzalez said. "We know our strengths and know our weaknesses, and one of our weaknesses has been supply chain," Gonzalez said. Both companies use direct sales models to reach customers, but Dell is well-known for its efficient manufacturing process. | |||||
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