Dell Acquires Alienware

Dell confirmed on Wednesday what had been rumored on blogs for nearly a week: it has purchased trendy gaming PC manufacturer Alienware. The company said the buy was aimed at strengthening its position among computer enthusiasts.

Alienware fans should not fear that their favorite PCs will soon bear the Dell logo -- the company would be a wholly-owned subsidiary of Dell, yet operate separately. The move is merely mainly aimed at bettering the company's supply chain, says Dell and Alienware.

"We believe that Alienware will realize significant advantages from Dell's world-class supply chain and operational efficiencies," Alienware CEO Nelson Gonzalez said. "They will allow us to continue to satisfy our core customers with the most innovative and highest-performing PCs, and ultimately extend the reach and appeal of the Alienware brand."

Financial terms of the deal were not disclosed. The transaction is expected to close within a few months, say Alienware representatives. According to Gonzalez, a Dell acquisition was considered the best option after it looked at offering stock in the company through an initial public offering.

Being the number one PC maker, Dell already has an impressive supply chain. Alienware's biggest weakness was a lack of one, say company representatives. Thus, an acquisition solved one of Alienware's biggest problems.

Dell chairman Michael Dell said Alienware's target audience and computer lineup complements Dell's more traditional computers. "In addition to offering high-quality, high-performance products, Alienware has tremendous brand appeal with consumers and creative business professionals," he said.

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