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Dell Snaps Up Alienware

3/24/2006 11:20:00 AM Eastern

Round Rock, Texas — After spending several days earlier this month denying any intention of buying high-end gaming PC maker Alienware, Dell officially announced the acquisition on March 23.

When completed, the privately held, Miami-based Alienware will become a wholly owned Dell subsidiary maintaining its own brand identity under the Dell umbrella. In addition, Alienware will retain its own development, marketing and sales organizations, but will take advantage of Dell’s supply chain and operational efficiencies, the companies said in a joint press release.

Alienware co-founder and CEO Nelson Gonzalez will retain his position.

Financial details of the deal were not disclosed, but the agreement is expected to be finalized in the next 30-60 days, Alienware said.

The move is unusual for Dell, which has always opted to grow internally rather than through acquisitions. Alienware said in a written statement to TWICE that it agreed to the merger because “Alienware is a successful, high growth company with a highly respected brand. Dell’s XPS products and Alienware’s products complement each other to address a wider range of customers in this high-growth category.”

In the past year Dell has taken several steps to boost its presence in the gaming market with the introduction its XPS desktop and notebook line.

At the same time, Alienware has mimicked Dell’s mall kiosk program.

Melding the two corporate cultures is not expected to be an issue.

“Customers concerned about our association with Dell can rest assured that Alienware will be operating as a wholly owned company and will stay committed to offering high-performance systems using the latest and greatest technology. Hard-core gaming customers will find the same excellence, commitment and quality in each and every Alienware system,” the company said through a spokesperson.

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