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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 BillyBatson on 8/28/2007 6:03:37 AM , Rating: 1
From what I have known they were always very good. I remember in the pentium MMX days up until Pentrium 2 they were pretty big and pretty high end, back when you could still find NEC and Packard Bell desktops in places like Sears and Circuit City. They left the US and when they came back a short time ago they came back aiming for more low cost business but the quality goes along with the price (look at dell, dell $600 range is cheap, XPS bumps you to better quality (which was not evident from my m1330), and alienware bumps you up further but also reflects in the price).

Last I heard Acer was big in Europe?


RE: is it just me...
By selfexiled on 8/29/2007 12:59:07 PM , Rating: 2
I remember having a good experience before back around 1996. I had a 133 Pentium with the 32 MB of EDO RAM. That Acer lasted pretty well, and survived the windows 98 SE upgrade. Looking back I'm fairly impressed that they had a nearly full range of accessories and products at the time (this was before Dell rose to prominence).

I know they left the market some time after that...but everyone I know who has bought an Acer notebook recently has had a fairly good experience. I was convinced that they hold a lower market share due to lack of name recognition rather than quality issues.

In fact, until these comments I was fairly sure that Acer had mainly Mid-Range systems and less of the "craputer" status that E-Machines/Compaq/Gateway held in their hey-days.

PS can anyone attest to the lack of "bloat-ware" in Acer systems? Compared to say...an HP system (which contains an insane amount, esp in laptops)


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