HP Acquires VoodooPC

By Doug Olenick, Greg Tarr & Colleen Bohen On Oct 9 2006 - 6:00am

Hewlett-Packard has signed a definitive agreement to acquire high-end PC gaming maker VoodooPC, based in Calgary, Canada.

Financial details of the deal were not disclosed, but it is expected to be finalized by November. Voodoo is a privately held company co-owned by the brothers Rahul and Ravi Sood, who will continue with the company.

“The gaming space is extraordinarily important to us strategically,” said Todd Bradley, HP Personal Systems Group executive VP. “We looked all around the world, and I'm very happy to say that we found [VoodooPC].”

The purchase is reminiscent of Dell's acquisition of Alienware earlier this year and will jump start HP's presence in the gaming market. Entering the gaming market with dedicated gaming PCs is a first for HP, which in the past had simply touted some of its more powerful models as well-equipped for gamers.

VoodooPC will become part of HP's new business gaming unit, which will reside as a unit of the company's Personal Systems Group (PSG) to be headed by PSG's chief technology officer Phil McKinney. Rahul will stay on as the unit's chief technologist and Ravi will become strategy director.

Steve Baker, the NPD Group's industry analysis VP, commented he saw room for growth and profit in that category. Baker also said the he though the collaboration between the two companies would help HP to “keep moving towards being more design-oriented,” moving it past its traditional “commodity PC” model.

HP will keep VoodooPC's current direct to the consumer distribution model and brand name along with its marketing, sales, support and developmental operations.

For more on HP and VoodooPC see www.TWICE.com