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Acer slogs through the red tape to get Packard Bell

In late August, Acer announced that it would acquire U.S.-based Gateway, Inc. for $710 million USD. The move came as a shock to many who weren’t expecting such a move from the Taiwanese computer giant.

At the time, Acer said that it acquired Gateway to expand its presence in the U.S. and strengthen its position in the worldwide marketplace. The acquisition of Gateway also meant that Acer gained access to low-cost PC maker eMachines which Gateway purchased in 2004 for $262 million USD.

"The acquisition of Gateway and its strong brand immediately completes Acer's global footprint, by strengthening our US presence," said Acer chairman J.T. Wang in August. "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."

Soon after the announcement was made, however, it became clear that Acer really wanted to go after Packard Bell. Gateway was given the right of first refusal (ROFR) for control of PB Holding Company S.à.r.l., the parent company for Packard Bell, by John Hui in June 2006. 

Acer today announced its intention to acquire all shares of PB Holding Company S.à.r.l., thus giving it complete control of Packard Bell. The acquisition is expected to be completed between the fourth quarter of 2007 and the first quarter of 2008.

Acer's latest acquisition means that it will have now have prime positioning to gain market share in Asia Acer), the U.S. (Gateway and eMachines) and Europe (Packard Bell).





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RE: Packard Bell still exists?
By Cogman on 10/9/2007 9:39:31 AM , Rating: 2
I don't think this will be the move that will put acer in front of a front runner company. But I do think this will ultimately improve their business and generate a higher revenue for them. Acquisitions don't always have to be about taking away the first place spot, in this case I think they are just planning on improving overall sales and profit.


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