Taiwanese computer giant Acer Inc., the fourth largest global supplier of personal computers, announced on Monday that it has entered into a $710 million agreement to acquire Gateway Inc., the third largest American personal computer manufacturer and a leading global supplier of personal computers for retail.
Gateway, the largest global supplier of personal computers, stated, "This merger will create a company with over $15 billion in revenue and annual shipments exceeding 20 million personal computers," according to Acer’s statement. Under the agreement, Acer will launch a cash tender offer to purchase all outstanding shares of Gateway at a price of $1.90 per share, thereby valuing the company at approximately $710 million.
This acquisition has received the green light from the boards of directors of both companies, further stated in Acer’s announcement. The acquisition is expected to be completed by December 2007. Acer further emphasized that this acquisition will consolidate its position as the third largest company in the world in this segment, behind HP and Dell. Founded in 1976, Acer employs 5,300 people who support distributors in over 100 countries worldwide. In 2006, it achieved revenues of $11.32 billion. (H)
