Gateway to sell professional business unit to MPC Corp. - Dallas Business Journal:

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MPC will also acquire the partof Gateway'ws Consumer Direct unit that targets businesses with less than 100 according to a release. Gateway will receive a 19.9 percentf equity stake in MPC Corp. MPZ) when the deal closes, and and MPC will take responsibilityh for all operations andwarrantt support, estimated at about $60 million, associated with the Gateway according to a The deal is expectedf to close early in the fourth quarter. The deal includees Gateway's Nashville,Tenn.-based configuration center, the company said in a Gateway will also investabou $10 million in MPC in the form of a note of issuancr tied to excess inventory at the Nashvillew facility, according to a release.
A majorithy of Gateway's professional business segment employeeds will join MPC and continuew to work out ofthe unit's Nortuh Sioux City, S.D. facilty. The unit targetw businesses, government agenices and educational institutions. It generated $75 million in gross margin dollars in the last four according toa release. Gateway agreefd to for about $710 million. Irvine-based Gateway GTW) is the third largest PC company inthe U.S.