Taipei (Taiwan) – Acer today said that it has agreed to purchase Gateway for about $710 million in cash.
Under the terms of the agreement, Acer will pay $1.90 per outstanding Gateway share. According to a press release, the acquisition already has been unanimously approved by the boards of directors of both Gateway and Acer and is now subject to standard closing conditions.
Acer said that the addition of Gateway to its business will create “a multi-branded PC-company with over $15 billion in revenues and shipments in excess of 20 million PC units per year.” According to market research firm IDC. The combined company will become the third largest PC vendor in the U.S., behind Dell and HP, with a combined market share of 10.8% (Acer: 5.2%; Gateway: 5.6%). Worldwide, Acer holds position #4, behind HP, Dell and Lenovo, with a market share of 7.2%. Gateway’s share was not listed among IDC’s top 5 global vendors.
“This strategic transaction is an important milestone in Acer’s long history,” said J.T. Wang, Chairman of Acer, in a prepared statement. “The acquisition of Gateway and its strong brand immediately completes Acer’s global footprint, by strengthening our US presence. 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.”