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MPC makes deal to build PC capacity

The company announces plans to buy a unit of Omni Tech, which builds desktops, notebooks and servers for small and medium-size businesses, government and education.

MPC Computers on Tuesday announced plans to expand its computer capacity by buying part of privately held PC manufacturer Omni Tech.

The Nampa, Idaho, company plans to purchase Omni Tech's End User Division, which builds desktops, notebooks and servers for small and medium-size businesses, government and education. MPC specializes in the same three areas, though it also sells consumer-oriented desktop PCs.

The acquisition will bring MPC, formerly known as Micron PC, a broader customer base and increased unit volumes, the company said in a statement. The increase in unit volume, which will allow MPC to boost revenue, will also help the company lower its costs by purchasing components in larger numbers.

"This acquisition is a win for the customers of both MPC and Omni Tech," Mike Adkins, MPC's chief executive, said in a statement. "With the increased scale we will gain from combining operations, our customers will see better price-performance and a wider portfolio of products and services.

MPC will merge the operations of the Omni Tech End User Division into its own over the next 60 days. No immediate changes are planned to Omni Tech's products or service programs, however, MPC said.

The deal is a bit of a twist for MPC, which itself was bought from parent company Micron Electronics in May 2001. Micron Electronics was a division of memory maker Micron Technology.

Gores Technology Group, a Los Angeles-based investment firm, purchased MPC and has since been working to reinvigorate the company with the aim of eventually reselling it. MPC has put together a string of consecutive profitable quarters that began shortly after the sale.

MPC, which is a private company, did not disclose the dollar value of the deal.

Omni Tech, based in Pewaukee, Wis., will continue to operate in other businesses, which include security and networking services, according to its Web site.