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Acer-Gateway deal is valued at $710 million USD

There is big news out of the computer world today. Acer today announced that it has reached a definitive agreement to purchase U.S.-based Gateway, Inc. Gateway is currently ranked as the fourth largest PC manufacturer in the U.S. with shipments of over 20 million PCs per year.

The acquisition is estimated to be valued at $710 million USD ($1.90 per share) and is expected to be finalized in December 2007.

"This strategic transaction is an important milestone in Acer's long history" said Acer chairman J.T. Wang. "The acquisition of Gateway and its strong brand immediately completes Acer's global footprint, by strengthening our US presence. This will be an excellent addition to Acer's already strong positions in Europe and Asia.  Upon acquiring Gateway, we will further solidify our position as number three PC vendor globally."

"Joining with Acer will enable us to bring even more value to the consumer segments we serve and capitalize on Acer's highly regarded supply chain operations and global reach to expand the scope of the Gateway and eMachines brands around the world," remarked Gateway CEO Ed Coleman.  "Acer has made impressive strides in the global PC market and the board and I welcome this merger."

From statements made by representatives for both companies, it appears that the eMachines brand -- which Gateway acquired 2004 for roughly $262 million USD -- and Gateway brand will live on under Acer's massive wings. The retention of the brands also means that Gateway will likely continue to flaunt its "cow heritage" much like the Chick-fil-A restaurant chain.

Almost exactly one year ago, it was reported that John Hui offered $450 million USD to purchase Gateway's retail division. The bid, however, was never accepted by Gateway. "I am very disappointed that Gateway has chosen not to constructively engage in discussions with me and my advisors on the proposal that I sent to you on Aug. 3," said Hui in August, 2006. "I believe that management and the board need to adopt a sense of urgency to address Gateway's problems."

The news of Acer’s acquisition comes just weeks after Gateway’s announcement that it would enter the Chinese PC market with desktop and notebook computers.

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RE: is it just me...
By stromgald on 8/27/2007 12:04:28 PM , Rating: 1
Yeah, this is a sad end to a fairly reputable computer brand. I think Gateway tried to be too much. They started out similar to Dell, but tried to maintain an Apple-esque exclusivity to their brand. And now, they're being bought out by one of the most shunned large name brands out there.

I have heard that Acer has been improving, but I haven't worked up the courage to get anything of theirs yet.

RE: is it just me...
By Chadder007 on 8/27/2007 12:57:58 PM , Rating: 1
They do make some great LCD monitors. We use them a lot here at my work and they have been great. Just don't have any experience with their PCs.

RE: is it just me...
By FITCamaro on 8/27/07, Rating: -1
RE: is it just me...
By Samus on 8/27/07, Rating: -1
RE: is it just me...
By Misty Dingos on 8/27/2007 1:00:02 PM , Rating: 2
First PC I bought was an Acer full tower Pentium 90mhz back in 95. I have built all the rest of my desktops since then but I could not complain about that PC. Where they went from 1995 I don't know. But anything has got to be better for Gateway than bottom feeding in the PC market. Perhaps two bottom feeders can make one middle of the road company?

RE: is it just me...
By xeltor on 8/27/2007 1:13:34 PM , Rating: 2
I'm not quite sure where you guys are coming from. I have always had good experiences with acer and poor ones with gateway. Though of all the computer manufacturers Dell has to be the one I've had the most troubles with.

RE: is it just me...
By Vanilla Thunder on 8/27/2007 3:36:43 PM , Rating: 2
I bought an Acer desktop for my gf a couple weeks ago. She didn't need anything high-end, just something to surf the web, play some music/dvd's, and do some home photo editing/printing. (And decent enough for me to load some last gen games onto.) I ended up with an AMD X24800+, 2 GB of DDR2, a 500GB HD, DVD-RW, 13 in 1 card reader, canon photo printer, and a 19" 5ms, 2000:1, widescreen monitor. Also included were mouse/kybd/spkrs and a copy of Vista Home Premium. All of this for around $650. Granted, there is no way you would mistake this for a premium system (the case and keyboard are prime examples) it is more than enough machine for the money from a B&M store. Compared to similarly priced HP's and Dells, you can't touch it. But to be honest, I've owned both, and rather than deal with them again, I thought I would give the Acer a run for it's money. So far, so good. Based on the short experience I've had with this one, I'd give them my money again. BTW, the monitor is SWEET.


RE: is it just me...
By AmbroseAthan on 8/27/2007 1:27:20 PM , Rating: 3
To add some support to Acer... I bought an Acer Ferrari 3200 a few years back, and it was great. Harddrive died on after a while (my Dell desktops' have died multiple times) and Acer overnighted me a new hardrive with another box to send my old one back in; this was after spending only 10 minutes on the phone with an English speaking American in Texas.

I also now have a 24" Acer WUXGA screen that I love to no end.

"Google fired a shot heard 'round the world, and now a second American company has answered the call to defend the rights of the Chinese people." -- Rep. Christopher H. Smith (R-N.J.)

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