Under an undefined "financial relationship" unveiled by Gateway (NYSE:GTW), the No. 2 direct seller of PCs will grant Miami-based Vitech (Nasdaq:VTCH) rights to produce, market and service Gateway products for Brazilian businesses and consumers. The arrangement also grants Gateway the option to buy Vitech at a future date.
Financial terms were not disclosed.
Vitech is one of Brazil's largest manufacturers and direct
sellers of PCs, business systems integration and networking
equipment.
Shares of Gateway closed at 50-9/16 on Tuesday on the New
York Stock Exchange. Shares of Vitech closed at 8-3/4 on the
Nasdaq stock market.
Gateway said it would also share technology, manufacturing
and assembly techniques with Vitech to ensure its products in
Brazil meet company standards.
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