Merged Acer-Gateway will be number three PC vendor

Stephen Withers
Tuesday, 28 August 2007 11:56

IT Industry - Strategy

Taiwan-based Acer has agreed to acquire Gateway, the fourth-largest PC vendor in the US.

The deal, which is subject to regulatory approval, is worth $US710 million and will make Acer the world's third largest PC vendor. HP is the leader, with Dell in second spot. Lenovo - China's biggest computer company - currently sits in third place according to IDC figures.

Gateway is in the process of divesting its US professional services business and acquiring European PC vendor Packard Bell. Lenovo had been trying to acquire Packard Bell, but Gateway has a right of first refusal linked to its purchase of eMachines in 2004.

"Upon acquiring Gateway, we will further solidify our position as number three PC vendor globally," said Acer chairman JT Wang.

Welcoming the merger, Gateway CEO Ed Coleman said "We believe our complementary geographical and product mixes, and our mutual focus on the consumer market makes Acer an outstanding partner for 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," he added.