Acer Inc. plans to acquire U.S. computer maker Gateway Inc. for $710 million in a deal that will push the Taiwanese company past China’s Lenovo Group as the world’s third largest vendor of personal computers. The deal is expected to close in December, pending approval by Taiwan and U.S. Regulatory Authorities. The acquisition has been approved by the Board of Directors at both Gateway and Acer.
The deal will create a multi-branded computer company with over $15 billion in revenues and shipments in excess of 20 million units per year, Acer said in the statement. “This strategic transaction is an important milestone in Acer’s long history,” said J.T. Wang, Acer’s chairman, in the statement. “This will be an excellent addition to Acer’s already strong positions in Europe and Asia.” Acer President Gianfranco Lanci said the acquisition would allow Acer to implement an “effective multi-brand strategy and cover all the major market segments.” The takeover will result in reductions in per unit procurement and component costs, and also create an opportunity for the cross selling of product portfolios, he added.
Ed Coleman, chief executive of Gateway, welcomed the buyout.
“Joining â€¦ Acer will enable us to bring even more value to the consumer segments we serve and capitalize on Acer’s highly regarded supply chain operations and global reach,” he said in the statement.