Purchase makes grey box vendor more trendy

Dell has agreed to acquire PC maker Alienware for an undisclosed sum.

The maker of high end gaming and multi media computer systems will remain to operate as an independent subsidiary.

The transaction marks the first acquisition by Dell of a fellow computer maker. The company so far has been known as one that achieves growth by stealing market share.

Alienware specialises in high performance computers that differentiate themselves through their design.

Dell meanwhile has become synonymous with basic, inexpensive boxes. The world's largest computer makers ha been pushing its XPS line in an attempt to gain a foothold in the high end PC market.

"Alienware's products are an excellent complement to Dell's own line of high-performance computers designed for gaming, enthusiast and media content customers. In addition to offering high-quality, high-performance products, Alienware has tremendous brand appeal with consumers and creative business professionals," Dell founder and chairman Michael Dell said in a statement.

Dell's financial performance has been under pressure in recent quarters as the firm struggled to sell computers in the high performance segment and had to witness how the majority of its sales shifted to inexpensive systems.

High end systems offer higher profit margins than the volume business that Dell is best known for. The volume segment furthermore is facing fierce competition from Asian manufacturers.

Rahul Sood, chief executive of Alienware competitor Voodoo PC first hinted at the pending deal three weeks ago in a blog posting.

He pointed out that high end PC maker were challenging Dell's "perceived technology leadership" which could ultimately undermine its position in the consumer market. He also argued that the rise of Apple had stolen Dell's spotlight as the trendsetter for the PC business.