Dell invades Alienware

23 Mar 2006

In a move aimed at boosting the performance of its supply chain and improving its standing amongst PC enthusiasts, Dell has decided to acquire Alienware. In the Republic, this adds 80 employees from Alienware’s Athlone operations to Dell’s existing 4,000-plus workforce.

Dell has not disclosed the financial terms of the deal. It is envisaged that the financial transaction should close 45 days after regulatory hurdles are cleared.

It is understood that Alienware will continue to operate as a separate company insofar as there will be no cross-marketing of Dell and Alienware PCs.

In a memo to employees in recent days, Alienware founder and CEO Nelson Gonzalez emphasised that Alienware will operate as a standalone division of Dell. “The management and founders of Alienware will continue to operate the company as a standalone unit of Dell. Alienware will retain its name, brand and product portfolio separate from Dell. Alienware will maintain its own product development activities, brand/product marketing, manufacturing, sales and technical support operations and brand under the same management,” Gonzalez wrote.

The deal gives Dell the opportunity to tap into the profitable high-end PC gaming market. Alienware is renowned for developing notebook computers that are ideal for gamers in terms of graphics and an appealing, funky look. In recent months the company has started to approach the business market with notebook computers.

It is understood that Alienware will continue to sell PCs that use processors from both AMD and Intel, despite the fact that Dell has an exclusive relationship with Intel.

In related news, it emerged in recent days that Dell is planning to double its workforce in India from 10,000 now to 20,000 employees.

In a comment likely to send shivers down the spines of development agencies here, Dell’s vice-president and general manager for south Asia, commenting to news agency Reuters suggested that the new Indian plant may even export to eastern Europe, depending on its capability. “It might be more cost effective to export it from India than from Ireland or from China.”

By John Kennedy