Gateway to buy Advanced Logic
PC and server maker Advanced Logic Research will become a wholly owned subsidiary of Gateway 2000 in a deal worth $194 million.
Gateway will pay $15.50 per share in cash for the outstanding common stock held by Advanced Logic shareholders. The deal is expected to close late next month.
Advanced Logic will become a wholly owned Gateway subsidiary but retain its brand name. Advanced Logic president Gene Lu and the company's operations will remain in place.
Gateway plans to use Advanced Logic's server technology in its Enterprise line.
Advanced Logic vice president and treasurer Vic Sial described the deal as an opportunity for the company to take advantage of Gateway's brand recognition, manufacturing expertise, and purchasing contracts.