Acer Acquires Gateway

Taiwan computer giant Acer today announced that it would acquire Gateway through a share buyout valued at $710 million. The move is meant to give Acer an edge in the US market and will create the third-largest PC maker in the country with 10.8 percent of the market -- nearly doubling the marketshare of next-best competitor Apple's 5.6 percent, according to data from research group IDC. It should also create the third-largest computer company in the world, Acer claims. Both Acer and Gateway believe the merger will complement their own strategies, with the Taiwan firm receiving a boost in recognition and Gateway receiving better presence for itself and its eMachines budget label.

The companies have not yet decided on the extent to which their computer lines will overlap, but the combined operations are expected to already save $150 million in the coming year. The deal should be completed by this December following government approval.

As part of the announcement, Gateway also revealed that it has bought out all controlling shares in PB Holding Company, effectively giving the American system builder control of Packard Bell. The latter exited the US market after poor results but has seen success in Europe in recent years, producing computers as well as media players and other portable electronics. Gateway also revealed that it hopes to shed its Professional business through a sale to an outside company, shifting its focus to the home user market.

By Electronista Staff

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