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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 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.


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