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Gateway buys PC Direct, cuts prices

Gateway buys PC Direct, cuts prices

As reported in ARN Daily November 11 and ARN November 18 (page 6), Gateway is to acquire the business and brands of New Zealand based PC Direct.

Eric Watson, executive chairman of PC Direct parent, Blue Star Group last week] confirmed the sale of the direct selling PC assembler to Gateway "subject to contractual conditions."

One of those conditions is a veil of secrecy about the deal, with neither organisation allowed to make any comment about the implications of the sale.

A spokesperson for Gateway in Australia said that details including how the PC Direct business would be handled and what impact the buyout would have on staff would be released early next week. A statement released by Gateway did however include that the positions of staff are to be maintained.

While PC Direct has grabbed a substantial slice of PC business in Australia, it is understood the attraction to Gateway was to accelerate its penetration into the New Zealand market.

Gateway Australasian managing director Peter Lees claimed that the purchase will bring on-going benefits to PC Direct's customer baseIn another announcement from Gateway, the direct vendor has made some price reductions on selected models of desktop and notebook PCs.

The cuts are applied to Gateway's E series of desktops, with the entry level E1200 reduced by $100 to $1899 through to the E4200 450 discounted by $300 to $3299 (incl tax) The Solo 9100 has been reduced by $400 to $5999


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