Dell explains Alienware buy to its staffWe have a very Dull memoBy Charlie Demerjian: Thursday 23 March 2006, 10:02SO, WHAT DID DELL tell its people about the Alienware buy? Not all that much, it seems, as you can plainly see below.µTo: Dell Team WorldwideToday we signed a definitive agreement to acquire Alienware to further expand our portfolio of high-performance PC solutions. Alienware is a successful, high-growth company with a highly respected brand.Dell’s XPS products and Alienware’s products complement each other to address a wider range of enthusiast and high-performance PC customers. The acquisition of Alienware will enhance our commitment to customers seeking extreme performance. Overall, customers benefit from us offering a wider choice of products in this category, including the best performance, product options and value. We believe that Alienware and Dell have excellent cultural alignment, as both companies were founded on the direct business model.Following consummation of the transaction, Alienware’s CEO and founder, Nelson Gonzalez, will report to Jim Schneider, Dell’s senior vice president and chief financial officer. Alienware will operate as a stand-alone, wholly owned subsidiary and maintain its own product development activities, product marketing, sales and technical support operations and brand under the same management.We will not sell or service their products and they will not sell ours. We expect to provide our expertise in supply chain management and logistics, but we will keep our operations separate. In terms of financial reporting, Alienware’s results for external purposes will be recorded in the geographies where they occur.While the acquisition is being announced today, it will not be final until all regulatory and other conditions are met, approximately 30 to 60 days from now. Until then, we must maintain and operate the companies as separate entities. All integration activities must wait until the closing of the acquisition. Accordingly, we are asking all employees not to make any contact with Alienware personnel until closing.This announcement clearly signals to our customers our commitment to high-performance computing.
Alienware explains why it's becoming DellienwareWe have a very Dull memo, part IIBy Theo Valich: Thursday 23 March 2006, 11:29<A TARGET="_blank" HREF="http://ad.uk.doubleclick.net/click%3Bh=v5|33b1|3|0|%2a|h%3B29619866%3B0-0%3B0%3B12933649%3B31-1|1%3B15529848|15547744|1%3B%3B%7Esscs%3D%3fhttp://www.vnunet.com/compliance/"><IMG SRC="http://m2.2mdn.net/1122679/CAcom01_336x280_qe.gif" BORDER=0></A>IN AN INTERESTING turn of events, CEO of Alienware sent an e-mail to all of the soon-to-be "Dellienware" staff explaining why the company has accepted the offer and what Dell will do for it in the future. The email is a bit different that the one written and approved by Dull's company watchdogs.While the whole mail makes an interesting read, the thing that could potentially worry current and future customers of Dellienware is the fact that the press release mentioned something about deploying Dell's experiences in business practices and customer support. µTo All Alienware Worldwide Employees:I would like to congratulate all of you for doing an excellent job in taking our company where it is today. It has been 10 years since Alex and I embarked on our dream to create a company totally committed to the things we love: science fiction, gaming, being creative and, most of all, PCs. Each of you plays an important role that has helped Alienware strive to become one of the premium PC manufacturers in the world. Since 1996, our success has been such that we have developed an enviable customer following, as well as the respect of industry analysts and the media who have acknowledged the growing power of our unique brand. And in the spirit of extending the reach and appeal of the Alienware brand, I am proud to announce that Alienware has agreed to be acquired by Dell.As managers in the company, it is important that you understand the logic and rationale of this acquisition announcement so that you can properly communicate it to your respective staffs. It will come as no surprise to many of you that Alex and I have had the highest level of respect and admiration for Dell since Alienware is committed to the virtues and efficiencies of the direct business model since its inception. We have similar employee cultures --- we both employ individuals who are passionate and like to win. But we also recognize that the Alienware and Dell brands are separate and unique and must be managed separately so that we don't dilute the key tenets, value proposition and "personality" of our respective brands. This acquisition is a logical progression for Alienware as we continue to grow within the PC industry. It will provide us with the capability of leveraging Dell's world class business practices and efficiencies without compromising the hallmarks of the Alienware brand and product strategy.Here are the three vital messages that you should take away from today's announcement:Ø Alienware will operate as a standalone division of Dell. The management and founders of Alienware will continue to operate the company as a standalone unit of Dell.Ø Alienware will retain its name, brand and product portfolio separate from Dell.Ø Alienware will maintain its own product development activities, brand/product marketing, manufacturing, sales and technical support operations and brand under the same management.Undoubtedly, there will be a seemingly endless list of questions you and your teams will have regarding today's announcement. The most important fact to recognize is that our name, facility, staff, manufacturing and procedures we currently have will remain the same. All existing business practices currently remain the same. The only real difference is that I will report directly to Jim Schneider, Dell's Chief Financial Officer, but all Alienware employees and directors still to report to their respective VPs and managers. It's really business as usual after today's announcement.Today's announcement will obviously generate a significant amount of inquires from the media as well as our current business partners and suppliers. Because we don't want Alienware employees misquoted on today's announcement, I ask each you to pay special attention to any incoming inquiries from the press --- phone or e-mail --- and direct them to Mark Vena and Winnie Wong for handling and follow up. Dell is handling the communications of this announcement with our major vendors and suppliers such as Intel, AMD, NVIDIA and Microsoft.I'm also excited to announce as well that we are arranging an Alienware All Employee Town Hall Meeting with me, Michael Dell and Kevin Rollins on Wednesday, March 29th. It will be held in the manufacturing facility at our Miami headquarters and it will be broadcast live via the Web so that our employees in EMEA and Costa Rica can participate. Employees will have the opportunity to ask questions. Details on this event and the Webcast will be communicated within the next days.Thank you for your dedication and hard work that created this opportunity for Alienware to attain this milestone. Together we will continue reaching for the stars!RegardsNelson GonzalezChief Executive Officer
