Dell announces Alienware purchase

— 6:06 PM on March 22, 2006

Dell has just announced that it has entered a definitive agreement to acquire high-end PC rival Alienware. Dell states that Alienware will operate as a wholly owned subsidiary while retaining its current brand, management, and founders, as well as product development, marketing, sales, and technical support. About the deal, Michael Dell said that Alienware's products would be an "excellent complement" to Dell's own line of high-performance machines, and that Alienware had "tremendous brand appeal." Nelson Gonzalez, Alienware's CEO, stated that Alienware would in turn benefit from Dell's "world-class supply chain and operational efficiencies," and that the "reach and appeal" of the Alienware brand would ultimately be extended. (Thanks to TR reader DrDillyBar for the heads-up on this story.)

This announcement vindicates earlier rumors sparked by VoodooPC CTO Rahul Sood, which Dell had later downplayed by claiming that Dell's high-end XPS range already offered "better performance and better value" than Alienware's machines.

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