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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 Belard on 8/27/2007 4:04:14 PM , Rating: 2
"or is Acer the worst of the "well known" PC brands?"

Acer has been in business for a very long time, before they left the USA Retail market, they were a higher-end PC company. When they returned a year or so ago, they aimed for the low-price market.

I've helped people buy Acer computers, they are easy to convert to XP since ACER has easy access drivers of both XP & Vista available. When I worked on the PC, the metal was a tad cheaper than HP,Dell etc - but the space and drive options were better. The motherboard is fine. The other parts like CPU, HDs, RAM and optical drives are the same stuff you find in any quality computer.

If you're buying a NAME-BRAND computer - they are ALL THE SAME... the same level of junk... as I always say. Get whatever is the best deal and "looks" that you like. And since they are the same, spending more than $600 on a Name-brand PC is a waste of money. Only true-high end PCs really make use of faster CPUs. You can blow $1200 on an HP top-end system and it'll have slow 533mhz RAM and maybe a 7600gs card (usually worse).

Acer has been making parts for other companies for decades. They have always been bigger than Gateway (I think).

RE: is it just me...
By spluurfg on 8/27/2007 5:08:58 PM , Rating: 2
Yeah... Acer believe it or not is/was the parent company of Ali (Acer Labs Inc) and AOpen (Acer Open), as well as BenQ (the mobile division was sold off to Siemens). They do a lot of peripherals and I believe OEM for 3rd parties. They're also very big in Taiwan, one of the large computer manufacturers out there, I believe.

I also have personal experience with several Acer notebooks, including tablets, all of which were of acceptable quality.

Note that pretty much every Tier1 manufacturer out there will contract the big component makers (often many different ones) in Taiwan to manufacture their components... Asus being the largest, currently used by Dell and many others I am sure.

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