Taiwan's Acer announced today that it will buy Gateway for $710 million (€519.66 million) and create the world's third-largest PC maker.
Acer Chairman J.T. Wang Jen-tang at a news conference in Taipei today. Image: Reuters.
Acer said it would pay $1.90 per Gateway share, representing a 57 per cent premium over Gateway's last closing price.
Acer said the merger would create a company with more than $15 billion in sales and 20 million PCs shipped per year, adding it would keep the Gateway brand in the US.
Acer shares closed down 1.85 per cent at 63.60 Taiwan dollars (€1.406) before the announcement.
The deal would help Acer immediately double its US market share, combining its own 5.2 per cent share with Gateway's 5.6 per cent, according to second-quarter market data from technology market intelligence provider IDC.
The deal is expected to be completed by December, placing the company in third place in the US market behind Dell and Hewlett-Packard.