Hardware Builder Consolidation: MPC Grabs Part of Omni Tech

MPC, the Nampa, Idaho, the computer maker formally known as MicronPC, provides desktops, notebooks, servers and services to the government, education, small and medium business, and consumer markets via direct sales and solution providers. It was acquired by Gores Technology Group, an international acquisition and management company, in 2001.

Omni Tech, based in Pewaukee, Wisc., a suburb of Milwaukee, is a full-line solution provider and white box builder offering networking, security, server and other solutions to customers mainly with large networking environments.

Until Tuesday, Omni Tech consisted of two divisions: The End User division that built white box desktops and servers, and resold servers and laptops from such vendors as Hewlett-Packard and IBM, and the Dedicated Computing division that focused on selling specific-use computers to customers such as General Electric for use with its X-ray machines.

Omni Tech's sale of its End User division was prompted by the realization by both companies that the IT industry is continuing to contract, said Omni Tech CEO Terry Anderson. "Business is not what it used to be," he said.

For example, said Anderson, Dell has become the 800-pound gorilla in this space, and is making an overt move on HP's business, most recently through last week's price cuts. "So a lot of people like us are going to be squeezed out," he said. "This sale is the best move for us. It's the best for our people, too. If we go into the hole, in two years there'll be nothing left."

Omni Tech's End User division targets many of the same customers as MPC, making the two complementary to each other, MPC officials said.

"This acquisition is a win for the customers of both MPC and Omni Tech. With the increased scale we will gain from combining operations, our customers will see better price-performance and a wider portfolio of products and services," said Mike Adkins, president and CEO of MPC, in a prepared statement.

Along with the End User division, MPC is hiring 133 of Omni Tech's 300 personnel, said Anderson. Another 67 related to system assembly are being laid off, as MPC will handle the assembly in its own facilities, he said.

MPC expects to fold Omni Tech's End User division into its operations within the next 60 days.

Financial details were not disclosed, as both companies are privately held, Anderson said.