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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 Le Québécois on 8/27/2007 7:40:38 PM , Rating: 2
Well, I did study in Electric engineering so yes I can in fact see when some components are poorly build.

But more to the point, if you know which brand can be trusted, what are their good and bad products and that you can see them in a computer like an Acer for example. I do thing it's more trust worthy then when you don't recognize the hardware inside or worst, when you know it's a really bad product or brand.

With that in mind, I can say that I trust Acer more than any pre-build computer on the the market(except for Dell because like I said in my previous post, I never opened one of their computer).

RE: is it just me...
By TomZ on 8/28/2007 12:43:24 AM , Rating: 2
Well, I did study in Electric engineering so yes I can in fact see when some components are poorly build.

Really, so you are trained to spot a failed diode, solder bridge underneath a BGA, a broken trace in an internal layer of a PCB?

Sorry, I'm just having a little fun at your expense. :o)

Quality is an attribute of a process, not of a product. I agree with you that quality tends to be somewhat consistent within a brand, however, these days its more of a crap shoot. A given brand may have a number of ODMs/CMs scattered around the globe, each of which with different quality characteristics.

RE: is it just me...
By glitchc on 8/28/2007 1:16:41 AM , Rating: 2
Cut the guy a break here. It's not like Acer or Dell or anybody else builds their own motherboards from scratch. They're usually bought from third-party OEMs. Hence, the quality of the component depends on the reputation of the OEM, not necessarily the reputation of the assembler. A lot of the chipsets, ex. Centrino, are proprietary and come directly from Intel anyhow.

For the record, I do own an Acer laptop. Bought refurb, came with a one-year warranty from Acer. Has given me excellent service without a hitch for over a year now. The HPs on the other hand, I've seen fall apart in my friends' hands.

RE: is it just me...
By Le Québécois on 8/28/2007 1:47:19 AM , Rating: 2
Really, so you are trained to spot a failed diode, solder bridge underneath a BGA, a broken trace in an internal layer of a PCB?

Well, I used to be. In fact it was the topic for one of my technical course. How to spot failing electronics pieces and be able to precisely diagnose why a component was defect. But believe me, it's really a big waste of time since it's a lot cheaper to just change the damn component, not fix it.

But it was a long time ago and I usually don't bring a good voltmeter and oscilloscope with me when I go computer shopping :P .

Sorry, I'm just having a little fun at your expense. :o)

So we're both having fun now!

I'm just entertaining you when I answer those questions because we both know that my knowledge in engineering isn't really useful when you just try to find a good computer for your grand-mother ;). In fact I know a lot of Electric engineers that don't know much on computer beside how to start their computers.

"If a man really wants to make a million dollars, the best way would be to start his own religion." -- Scientology founder L. Ron. Hubbard

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