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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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Keep the Acer name?
By MADAOO7 on 10/9/2007 12:53:27 PM , Rating: 2
I've always bought Acer products. I remember my first 4x CD-RW was an Acer. I think they have a great reputation, great quality products and I think having a more recognizable name will only help them. Unfortunately, I don't know how strong the Gateway name is anymore. They really have fell quite a bit from their heyday. Do you think they'll keep the Gateway name and use only Acer? I guess that would defeat the point of buying Gateway though. Or do you think they will get rid of Acer brand goods and call them all Gateway now? Either way, I think it's a win win for Acer. Competition is always good in technology. I mean look at Vizio, make a average performance LCD at a low price and bam....your the market leader. Still blows my mind.

With that said, does anyone know where Vizio came from? Like they came out of friggin no where.....

RE: Keep the Acer name?
By Oregonian2 on 10/9/2007 2:17:49 PM , Rating: 2
Exactly where you said they came from: out of nowhere. I think they're just like Olevia and are a marketing company that sells low end no-name TV's with their no-name on them for low end prices in huge volumes. Another example where price wins over quality in the marketplace (which is why I think HD disc format will 'win' -- the market loves cheap stuff if it's "adequate"). And I don't mean this in a bad way, I've a 32" Olevia HDTV in our bedroom, wouldn't buy one for the living room, but for a bedroom it's fine despite it's rough edges.

"Nowadays, security guys break the Mac every single day. Every single day, they come out with a total exploit, your machine can be taken over totally. I dare anybody to do that once a month on the Windows machine." -- Bill Gates
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