Acer to Acquire Gateway for $710 Million

Today, August 27, 2007, Acer announced that it will purchase all of Gateway’s outstanding shares for $1.90 per share and has been approved by the boards of directors at both companies. The two companies are expecting the deal to be completed by the end of this year, of course, given that the US government approves. Acer moved first and Lenovo can’t buy Packard Bell. Gateway has the right of first refusal if a company desires to purchase shares in Packard Bell’s parent company, PB Holding Co. SARL.

Acer + Gateway: 18.6 million PCs in 2006
Lenovo: 16.6 million PCs in 2006
Acer in US: Increase of 164% Y/Y in Q2’07 with 888,000 PCs sold, 5.2% share of US market
Gateway in US: 965,000 PCs sold in Q2’07 with 5.6% share of US market
Acer + Gateway in US: #3 behind HP and Dell 

Sounds good on paper but will require a lot of work. Just as it was with HP purchasing Compaq, the Gateway purchase by Acer will require a tremendous amount of work aligning work culture and strategic goals. We should also note that this is the second major PC company that is being sold to an Asian company recently, IBM’s PC division was sold to Lenovo not too long ago. I’m not anti-Asian, but I don’t like seeing Asian companies gobbling up US companies as I would like to see US companies stay US companies since I live in the US. It will be sad to see Gateway go. I remember a long time ago flipping through PC magazines that had Gateway advertisements with cows. Those were cool.

Source: PC World

[tags]Acer, Gateway, IBM, Lenovo, Packard Bell[/tags]

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