taiwans-acer-buys-americas-gateway-for-710-million

Taiwan's Acer buy's America's Gateway for $710 million

Acer announces it will acquire Gateway, the fourth largest PC company in the US, growing its revenues by around one third via the deal.

By Sameera Anand

August 27, 2007

TaiwanÆs Acer will acquire currently loss-making Gateway, the fourth largest personal computer company in the US and a leading retail PC provider, for an equity value of $710 million. The combine will be a multi-branded PC company with over $15 billion in revenues.

Via a cash tender offer Acer will offer for all the outstanding shares of Gateway for $1.90 per share, aggregating $710 million. The offer price represents a 57% premium to the prevailing share price of Gateway, which closed around $1.21 levels on August 24.

The deal will include Gateway's right of first refusal to acquire Packard Bell in Europe although details of how this will work are not immediately available. Lenovo announced...

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