Gores Technology Group Announces Agreement to Buy Micron Electronics’ PC Division
May 1, 2001
LOS ANGELES, May 1 /PRNewswire/ -- Gores Technology Group (GTG), a privately held international acquisition and management company, announced today that it has signed a definitive agreement to buy the PC division of Micron Electronics (Nasdaq: MUEI).
Under GTG's ownership, the PC operations, which provide award-winning computer products and services for the small- and medium-size business, government, education and consumer markets, will be called MicronPC. It will continue to operate from its current facilities in Idaho. Its management team will remain intact.
The acquisition of Micron's PC division by GTG comes just weeks after GTG's announcement that The Learning Company, which it acquired from Mattel Corporation in (month and year), was profitable in the first 75 days of GTG's ownership. Under prior ownership, The Learning Company was losing a reported $1.5 million a day.
Gores Technology Group, which specializes in acquiring high-tech organizations and managing them for growth and profitability, has, to date, acquired approximately 35 companies providing high-tech services and products with annual revenues in the aggregate of over $2 billion.
Alec Gores, Founder and Chairman of GTG, said, "The acquisition of MicronPC provides an exciting opportunity for GTG. We are confident that the business has significant potential, and we look forward to providing the leadership and resources required to create and sustain a dynamic and market leading enterprise."
Vance Diggins, Chief Executive Officer of GTG, added, "While there are clearly challenges ahead, MicronPC's strength in the government, small and medium business, and retail direct segments, along with their industry-leading execution of the direct model principals in manufacturing and supply-chain management provide significant opportunities for growth. We are very impressed by the people we have met at Micron PC and encouraged by recent progress that has been made in the small and medium business segments. We look forward to working with Micron PC's management team to maximize the potential of this business."
Mike Adkins, MicronPC Direct Division President, said, "We are very enthusiastic about our relationship with GTG and the opportunities that it provides. GTG has a sterling reputation for the results it has achieved by empowering management and employees to move quickly to take the necessary steps to maximize growth and add value to technology businesses. The work they have done with The Learning Company, which they acquired from Mattel, is a textbook example. This new arrangement will enable us to apply more clarity and focus to the PC business, along with providing the funding and resources we require to become an even stronger provider of solutions for our customers."
"Micron PC has a significant competitive advantage in its supply-chain and manufacturing process," said Lyle Jordan, Division President WW Supply Chain Operations. "Our model leads the industry in efficiency and inventory management. Under the GTG ownership umbrella, we are looking forward to leveraging this advantage even further."
MicronPC is a leading computer company, providing award-winning computer products and services for the small- and medium-size business, government, education and consumer markets. In addition to its direct business-to- business sales channel, MicronPC products are sold in partnership with leading retailers nationwide. MicronPC has more than 1,000 employees, and approximately $1 billion in fiscal 2000 revenues. The company is based in Nampa, Idaho, and can be reached at www.micronpc.com. For further information on MicronPC, please contact Michele Casey of Micron PC at (208) 893-3827.
About Gores Technology Group
With headquarters in Los Angeles, Gores Technology Group (GTG) is a privately held international acquisition and management firm that pursues an aggressive strategy of acquiring promising high-technology organizations and managing them for growth and profitability. GTG has made a name for itself by acquiring and successfully managing companies -- including many divisions acquired from large publicly traded companies -- through its commitment to customers, employees and continued development of intellectual property. GTG has acquired and managed approximately 35 interrelated but autonomous technology-oriented companies with locations throughout the world. Those companies provide a broad range of technology-based products and services to a substantial customer base representing millions of active users worldwide.