MIAMI (AP) — Dell Inc., the world's largest computer maker, said Wednesday it would buy Alienware Corp., whose high-end PCs are widely acclaimed by video gamers for their fast performance and sleek, UFO-themed looks.
Dell, based in Round Rock, Texas, didn't announce terms of the deal, which will help expand its offerings for the lucrative gaming and multimedia market. Dell said Alienware would operate as a wholly owned subsidiary and will keep its brand name and its own product development, marketing, sales, technical support and other operations.
Miami-based Alienware was founded in 1996 by Nelson Gonzalez and Alex Aguila, two childhood friends who have built a cult-like following for their PCs that cost an average of about $3,000 to $4,000. They will continue to run the company as a standalone unit of Dell, Dell said.
"This acquisition makes sense because the space that Alienware plays in is a high-growth segment of the PC business. It's also a high-margin segment," IDC analyst Richard Shim said.
One risk, though, is that hard-core gamers may think that Alienware has lost its street credibility by making a deal with a mainstream player like Dell, he said.
"It'll be interesting to see what Dell does. If they're smart, they'll leave the brand alone. If the brand is tainted in the eyes of gamers, then the acquisition won't live up to its potential," he said.
Alienware is on track to hit $225 million in sales this year, up from $172 million in 2005.