HyperSpace said in a statement on Monday that the acquisition will lend it stature and allow it to diversify, using the client relationships and sales channels created by MPC to expand the distribution of HyperSpace software.
"MPC brings product lines and direct relationships with thousands of customers that will give our HyperWeb and HyperTunnel acceleration solutions immediate visibility in the government, education and enterprise sectors," Mark Endry, HyperSpace's CEO, said in a statement.MPC views the deal as giving it more flexibility for future maneuvers such as acquisitions, an MPC executive said.
MPC, headquartered in Nampa, Idaho, will continue to operate under the MPC brand, HyperSpace said. In addition to sellingand notebook PCs, as well as servers, MPC owns a 340,000-square-foot manufacturing facility and operates a 50,000-square-foot third-party logistics center in Nampa.
Micron PC was once part of memory maker Micron Technology's Micron Electronics subsidiary and was a top seller of performance PCs to North American consumers. Like most PC makers, it was hit hard by the economic downturn and resulting PC market malaise of 2001.
During that time, Micron Electronics refocused its efforts on Web hosting and put its PC assets up for sale. Goresand then morphed it into the smaller, more focused MPC Computers that now serves government and education clients.
Under terms of the agreement, HyperSpace expects to issue an aggregate of 4.3 million shares of its common stock in return for all of the outstanding limited-liability units in MPC's parent company, GTG PC Holdings, plus warrants to purchase 5 million shares with an exercise price of $3 per share and 1.5 million shares with an exercise price of $5.50 per share. The deal is expected to close midyear, an MPC executive said.
"It seems like pretty much a win-win," said Roger Kay, an analyst at IDC. "This looks like a payday for everybody. HyperSpace gets access to markets, MPC gets access to capital and Gores gets access to liquidity."