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

Acer to Acquire US-Based Gateway

Discussion in 'News' started by malware, Aug 27, 2007.

  1. malware New Member

    Joined:
    Nov 7, 2004
    Messages:
    5,476 (1.52/day)
    Thanks Received:
    956
    Location:
    Bulgaria
    Acer Inc., one of the world's leading branded PC vendors, announced today it has entered into a definitive agreement to acquire Gateway, Inc. Gateway is the fourth largest PC company in the US and a leading retail PC provider. The combination will create a multi-branded PC-company with over US$15 billion in revenues and shipments in excess of 20 million PC units per year.

    Under the terms of the agreement, Acer will commence a cash tender offer to purchase all the outstanding shares of Gateway for $1.90 per share, which represents total equity value consideration of approximately $710 million. The acquisition has been unanimously approved by the boards of directors of both Gateway and Acer and is subject to standard closing conditions, including approval under Hart Scott Rodino, Exon Florio and similar laws outside the U.S. The acquisition is expected to close by December 2007.

    Gateway earlier announced that it intends to exercise its Right of First Refusal to acquire from Lap Shun (John) Hui, all of the shares of PB Holding Company, S.ar.l, the parent company for Packard Bell BV - a leading European PC vendor based in France. In addition, Gateway is currently in discussions with a third party with regards to a sale of its U.S. based Professional business.

    "This strategic transaction is an important milestone in Acer's long history" said J.T. Wang, Chairman of Acer. "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."

    Gianfranco Lanci, President of Acer, added, "Both Acer's and Gateway's geographical presences and product positioning are highly complementary. We believe that our combined scale will lead to significant efficiencies. Gateway has built one of the industry's most powerful and unique brands and with this acquisition, we will have the opportunity to implement an effective multi-brand strategy and cover all the major market segments. In time, we intend to actively manage our brand portfolio and differentiate our brands to address different consumer segments. We are also acquiring a world-class team and Gateway's employees will be critical to our combined success."

    "We believe our complementary geographical and product mixes, and our mutual focus on the consumer market makes Acer an outstanding partner for Gateway." explained Ed Coleman, CEO of Gateway. "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."

    The combination of Acer and Gateway is expected to result in significant revenue and cost synergies. The considerable increase in scale will result in reductions in per unit procurement and component costs for both companies. This combination also creates a real opportunity for the cross-selling of product portfolios by leveraging the customer relationships of both Acer and Gateway. Significant savings are also expected through the increased efficiency of the combined back-office functions. The pre-tax synergies are expected to be at least $150 million. In addition, this transaction is expected to be accretive to Acer's earnings per share in 2008 without synergies.

    Source: Acer
     
  2. Solaris17

    Solaris17 Creator Solaris Utility DVD

    Joined:
    Aug 16, 2005
    Messages:
    17,208 (5.18/day)
    Thanks Received:
    3,565
    Location:
    Florida
    YES!!! i hate gateway and Acer will take much better care of the company imo
     
  3. hv43082

    Joined:
    Sep 15, 2006
    Messages:
    1,448 (0.49/day)
    Thanks Received:
    94
    Location:
    Orange County, CA and Miami, FL
    So they will finally get rid of the cow's print on their boxes!
     
  4. zekrahminator

    zekrahminator McLovin

    Joined:
    Jan 29, 2006
    Messages:
    9,114 (2.89/day)
    Thanks Received:
    321
    Location:
    My house.
    Gateway is an amazing company, they used to make the best commercials, and way back when their desktops were actually easy to customize/upgrade. Now, I love their laptops, and their support is top-notch. What Acer will do to Gateway, time will tell, but I sure hope they don't just kill it.
     
  5. effmaster

    effmaster New Member

    Joined:
    Aug 22, 2007
    Messages:
    1,328 (0.51/day)
    Thanks Received:
    75
    Location:
    Rocket City, Alabama (Huntsville)
    Wow such huge gateway haters in this thread:shadedshu:shadedshu

    Its not like Gateway is a first party company anymore where they would screw us over by requiring us to buy any upgrades or spare parts from them. Thats when they sucked. But I have had a complete turnaround in terms of liking Gatway they are coming out with some relatively inexpensive high powered desktops right now that I really like. If I ever decide to buy a desktop instead of build one it would be either an HP or Gateway brand (though not emachines since i have yet to see a high end emachines desktop lol). Personally I think that with Acers expertise in laptops and Gateways expertise in desktops it could deliver a one-two punch among many other things.

    THis merger will be great for them and the consumer hopefully. Though I cant help but wonder what will happen to the Gateway and Emachines logos will they still be sold with their original names like Emachines computers still are or will they all be changed to the logo Acer or will they come up with a brand new name from the three new united companies. Either way I hope it doesnt create any problems with the customer in terms of name brand lol
     
  6. WarEagleAU

    WarEagleAU Bird of Prey

    Joined:
    Jul 9, 2006
    Messages:
    10,797 (3.60/day)
    Thanks Received:
    546
    Location:
    Gurley, AL
    I love Gateway. My second pc, first ever bought by me, was a Gateway Athlon Thunderbird 1200mhz. Still have parts from that computer Im using. It was awesome and their support is top notch. Ive never used an Acer so I cannot comment on them, but Im sure they will take care of the company.
     
  7. V lyx New Member

    Joined:
    Jul 5, 2007
    Messages:
    61 (0.02/day)
    Thanks Received:
    3
    Acer is no better than gateway imo, prob worst. You should see how many "I hate acer computers websites" there are. My sister bought one from them and tryed to get it fixed and they ended up losing her computer.
     
  8. ktr

    ktr

    Joined:
    Apr 7, 2006
    Messages:
    7,407 (2.40/day)
    Thanks Received:
    687
    yea, acer has a horrible website, but their products are great! and a good price too.
     
  9. theonetruewill New Member

    Joined:
    Nov 12, 2006
    Messages:
    2,996 (1.04/day)
    Thanks Received:
    240
    Location:
    London - Close your eyes and you'll see me
    I love my Gateway laptop (my family have 3). I can oc this 1.86Ghz Pentium M 750 to 2.2Ghz:rockout:
     

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

Share This Page