Acer acquiring Gateway for $710 million

Acer acquiring Gateway for $710 million

Taiwan based PC manufacturer Acer has announced that they are acquiring rivals Gateway in an all-cash deal valued at $710 million.

The combined entity would become the world’s third largest PC vendor by shipments. This deal would also make Acer a multi-brand company as they aim to maintain the Gateway brand alive.

Gianfranco Lanci, president of Acer spoke on their plans for Gateway: “A strong U.S. brand such as Gateway’s can be expanded overseas into other markets.”

Gateway is currently the fourth largest PC maker in the US market. Incidentally, they were already planning to acquire Packard Bell BV.

Acer would gain from this deal as they now stands to make better deals with parts suppliers. This is expected to bring in better prices for their customers in the longer term.

Acer however did not stated whether they plan to cut any jobs in the company.