1. Welcome to TechPowerUp Forums, Guest! Please check out our forum guidelines for info related to our community.

Acer and Gateway to Complete Merger Within the Next Few Days

Discussion in 'News' started by Polaris573, Oct 11, 2007.

  1. Polaris573

    Polaris573 Senior Moderator

    Joined:
    Feb 26, 2005
    Messages:
    4,281 (1.21/day)
    Thanks Received:
    718
    Location:
    Little Rock, USA
    Acer has acquired over 90 percent of outstanding shares of Gateway, paving the way for completion of the deal, announced in August, to buy U.S. PC vendor Gateway for around 710 million USD through a tender offer for the company's shares. Acer announced that its investment subsidiary, set up to buy Gateway stock, had finished the tender offer and would soon finalize the deal. The two companies will formally merge within the next few days, and the deal will be closed by Oct. 16. Gateway's stock will cease to trade on the New York Stock Exchange by that date. Analysts predict, the Acer-Gateway deal and the pending arrangement for Gateway to buy European PC vendor Packard Bell, will put the Taiwanese company in a position to challenge Hewlett-Packard Co. and Dell Inc. for U.S. market share. Blocking rival Lenovo Group Ltd. from gaining ground in Europe through its planned purchase of Packard Bell. Gateway will continue to operate under its own name as a subsidiary of Acer, and the company expects to expand its product offerings. Acer said it was gratified by the enthusiasm in which Gateway employees and clients have reacted to the acquisition. In a separate statement, Acer said it borrowed 607.2 million USD from Citigroup Inc. for use in the Gateway purchase.

    Source: PC World
     
  2. NamesDontMatter

    Joined:
    Oct 1, 2005
    Messages:
    797 (0.24/day)
    Thanks Received:
    35
    Go Acer, Gateway has been dieing out ever since they tried to do retail selling of PCs/laptops. But these megamergers, how many jobs will be lost in this?
     
  3. WarEagleAU

    WarEagleAU Bird of Prey

    Joined:
    Jul 9, 2006
    Messages:
    10,797 (3.56/day)
    Thanks Received:
    546
    Location:
    Gurley, AL
    I thought their retail selling of PCs made them a hit with the consumer..
     
  4. ex_reven New Member

    Joined:
    Sep 4, 2006
    Messages:
    5,225 (1.76/day)
    Thanks Received:
    171
    If the gateway stores/services remain open, probably none for the time being.
     
  5. NamesDontMatter

    Joined:
    Oct 1, 2005
    Messages:
    797 (0.24/day)
    Thanks Received:
    35
    nope, a few years back they had to do some major downsizing because they over expanded in retail. While they did this the bulk of their sales were still online/by catalog.
     

Currently Active Users Viewing This Thread: 1 (0 members and 1 guest)

Share This Page