Today we signed a definitive agreement to acquire Alienware to further expand our portfolio of high-performance PC solutions. 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 enthusiast and high-performance PC customers. The acquisition of Alienware will enhance our commitment to customers seeking extreme performance. Overall, customers benefit from us offering a wider choice of products in this category, including the best performance, product options and value. We believe that Alienware and Dell have excellent cultural alignment, as both companies were founded on the direct business model.
Following consummation of the transaction, Alienware’s CEO and founder, Nelson Gonzalez, will report to Jim Schneider, Dell’s senior vice president and chief financial officer. Alienware will operate as a stand-alone, wholly owned subsidiary and maintain its own product development activities, product marketing, sales and technical support operations and brand under the same management.
We will not sell or service their products and they will not sell ours. We expect to provide our expertise in supply chain management and logistics, but we will keep our operations separate. In terms of financial reporting, Alienware’s results for external purposes will be recorded in the geographies where they occur.
While the acquisition is being announced today, it will not be final until all regulatory and other conditions are met, approximately 30 to 60 days from now. Until then, we must maintain and operate the companies as separate entities. All integration activities must wait until the closing of the acquisition. Accordingly, we are asking all employees not to make any contact with Alienware personnel until closing.
This announcement clearly signals to our customers our commitment to high-performance computing.