Acer Will Acquire Gateway, Aims For Higher Ground
Acer is currently the world's third PC manufacturer and definitely aims to move to higher ground. The acquisition of Gateway Inc. should be a step in the right direction and the company is willing to spend $1.90 per share, $710 million it total.
August 27, 2007
Currently, Gateway Inc ranks as the third manufacturer in the United States.
"This strategic transaction is an important milestone in Acer's long history. 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."(J.T. Wang, Chairman of Acer)
Acer execs expected the to be completed by December 2007. According to early predictions, Gateway's inclusion in the Acer empire will lead to shipments that would surpass 20 million PC units per year, while global revenue will be around $15 billion.
"Joining with 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 to expand the scope of the Gateway and eMachines brands around the world. Acer has made impressive strides in the global PC market and the board and I welcome this merger."(Ed Coleman, CEO of Gateway)
While Acer's business seem to be flourishing, Dell is still in trouble over various issues, with color and display shortages being the latest additions to the list. If the US giant doesn't shape up soon we might eventually see Acer sitting comfortably on the second place in the top, while Dell would have to pack up and move down a bit.