Dell snaps up Alienware

Dell Inc. has agreed to purchase high-performance PC vendor Alienware Corp., the two companies announced Wednesday.

The acquisition will "compliment Dell's own line of high-performance computers," while giving the Alienware products the benefits of Dell's "supply chain and operational efficiencies," the companies said in a statement.

The purchase, which was rumored for weeks, is expected to clear regulatory requirements in 30 to 60 days. Ultimately, the acquisition will shorten the time it takes for customers to get their hands on Alienware's sleek gaming workstations and laptops.

It can take from four to six weeks for customers to take possession of some of Alienware's products, said Mark Vena, an Alienware spokesman. For Dell that lead time is generally less than 10 days, he said. "They're absolutely world-class in that area."

Dell already sells high-end workstations under its XPS brand, but with the Alienware acquisition it gets something that the Round Rock, Texas-based company would have had a hard time creating on its own: gamer cachet.

"Dell will always be thought of as a good business-and-consumer company," said Tim Bajarin, president of the Creative Strategies Inc. analyst firm. "A Dell logo will still not play in the same way Alienware would."

Bajarin said it was unclear whether or not the company might discontinue its XPS systems, following the acquisition. "It's hard to tell," he said. "There are some segments that would still buy Dell because of the service and support image, and who really don't care about the gamer image," he said.

The Miami-based Alienware will continue to operate as a wholly owned subsidiary of the PC maker, and will continue to develop, market, sell and support the Alienware products.

One interesting side-effect of this structure is that it will give microprocessor vendor Advanced Micro Devices Inc. (AMD) a foothold in Dell, which has to date resisted selling systems based on AMD's chips. A number of Alienware's PCs, including its Aurora and ALX series systems, are built with AMD processors.

Industry observers have speculated that Dell's tight relationship with AMD rival Intel Corp. has kept the PC maker from selling AMD's chips. But according to a Dell spokesman, Alienware will be free to continue to sell whichever processors it chooses. "That's the kind of decision that they make on their own," he said.

Founded in 1996 by Nelson Gonzalez and Alex Aguila, Alienware is best known for its high-performance gaming PCs and stylish laptops. The privately held company sells systems in United States, Europe, Australia and New Zealand.

Alienware employs a staff of about 700, none of whom are expected to be laid off as a result of the acquisition, the companies said.

Terms of the acquisition were not disclosed.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Robert McMillan

IDG News Service
Show Comments

Cool Tech

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Breitling Superocean Heritage Chronographe 44

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?