Gateway has signed a definitive agreement to sell its Professional business segment to MPC Corporation. The transaction is valued at approximately $90 million.
Earlier this year, Gateway embraced a consumer focused strategy. It aims to simplify its business model by and put more emphasis on the consumer business.
MPC is to assume ownership of Gateways Nashville based final assembly facility (GCC). It will also get a portion of Gateway's Consumer Direct unit that targets businesses with less than 100 employees.
A significant part of Gateway Professional employees will join MPC and continue to work out of North Sioux City.
MPC will also assume responibility forr all operations and warrany support concernig Gateway's Professional business, valued at $60 million.
Gateway will invest around $10 million in MPC in the form of a note issuance tied to excess inventory at the GCC. The company will thus recieve a 19.9% stake in MPC Corporation and will also take an impairment charge of $16 million related to IT assets associated with its Professional business.