Acer to acquire Gateway in $710 million deal

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.

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News source: Network World

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So now it's Acer-Gatway-PB-ZDS-NEC? Why don't they just merge with Dell and HP-Compaq and get it over with, it's not like competition is a good thing or consumers like having a choice. We'd all rather have one giant monopoly to buy from.

dad'll hate that. Had an Acros for a full decade which Acer bought out shortly after he bought it in 1992. He next computer 11 years later was an eMachine which Gateway bought and now Acer buys Gateway. Figures. lol

(ie can't stand emachines, but at least they are better built than the HP Pavilion's

Wow so now Acer owns Gateway and Emachines. Didn't know gateway's share were so low though. I really hope that acer keeps the design of Gateway's better looking machines because Acer laptops and desktops at least ones sold in retail look like crap.

Double dog damn it!!! I just unloaded my Gateway stock last week...

Edit: It was jetblue that I dumped not Gateway. Thank goodness

Buy out the competition so that they can jack up their own prices.

I believe Gateway sells the less expensive laptops also like Acer does.

TC17 said,
Buy out the competition so that they can jack up their own prices.

I believe Gateway sells the less expensive laptops also like Acer does.

Sorry, but both of your statements are wrong.

IT industry is probably the most competitive. Acquisitions, partnerships, and strategic alliances happen everyday, but no one has yet been able to control the price, because even when you are number 1 PC manufacturer (Dell), you only control ~30% of the market share, far far below than a monopoly.

Acer's PC's and laptops have always been well built. As for their line-up, they have a Ferrari series of laptops with unique design that cost a premium.

Zhivago said,
Sorry, but both of your statements are wrong.

IT industry is probably the most competitive. Acquisitions, partnerships, and strategic alliances happen everyday, but no one has yet been able to control the price, because even when you are number 1 PC manufacturer (Dell), you only control ~30% of the market share, far far below than a monopoly.

Acer's PC's and laptops have always been well built. As for their line-up, they have a Ferrari series of laptops with unique design that cost a premium.


Just FYI, HP is now the #1 PC manufacturer. They surpassed Dell quite a while ago.