MPC enters HyperSpace
- By Michael Hardy
- Mar 22, 2005
MPC Computers, which supplies desktop computers and other hardware to government organizations, has agreed to be acquired by HyperSpace Communications. HyperSpace specializes in software products aimed at speeding up Internet performance.
Although the fit between the two firms may not be obvious at first, HyperSpace president and chief executive officer Mark Endry said the combination of the two will create a diversified technology firm. HyperSpace officials will market their software through MPC's existing sales channels, he added.
HyperSpace, best known for HyperWeb and HyperTunnel, will get immediate visibility in the government, education and enterprise sectors, in which MPC is strongest, Endry said.
Adding HyperSpace's products to MPC's hardware offerings will make the combined company a more powerful force, said Michael Adkins, MPC's president and CEO. "By offering customers a broader set of products, we address a growing trend among technology-intensive organizations to do business with fewer vendors in order to improve their efficiencies and customer experiences," he said in a written statement.
MPC is a private firm, but the transaction requires approval from HyperSpace shareholders. Under the deal, HyperSpace would issue 4.3 million shares of common stock to MPC's parent firm, GTG PC Holdings, along with warrants to purchase 5 million shares at $3 per share and 1.5 million shares at $5.50 per share. MPC traded at $3.85 per share as of 12:27 this afternoon.