One of the world’s big names in PCs and laptop computers, Acer, has acquired one of the other big names to create ‚Ķ. well, an even bigger name, as Gateway have just bought Packard Bell.
Acer Inc, one of the world’s leading branded PC vendors, has announced it has entered into an agreement to acquire Gateway, Inc., the fourth largest PC company in the US and a leading retail PC provider. The combination will create a multi-branded PC-company with more than US$15 billion in revenues and shipments of more than 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. The acquisition is expected to close by December 2007.
‚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.
· For more information, visit the Acer website at www.acer.com.
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