Acer plans to acquire Gateway in a deal worth $710 million that Acer says will make it the world's third-largest PC vendor.
Under terms of the agreement announced Monday, Acer will purchase all of Gateway's outstanding shares for $1.90 per share. The deal has already been approved by the boards of directors at both companies and should be completed by the end of this year, subject to government approval, Acer said in a statement. Gateway's shares ended at $1.21 Friday on the New York Stock Exchange.
"This is the biggest acquisition in Acer's 30 year history," said J.T. Wang, Acer's chairman, speaking at a news conference in Taipei.
"After this acquisition, we are solidly No. 3 in the global PC market," Wang said.
Acer's acquisition deal with Gateway also derails rival Lenovo Group's plans to acquire Packard Bell.