Acer to Acquire Gateway, Forms World’s 3rd Largest PC Company
Acer announced it’s acquiring Gateway for $710-million, the fourth largest PC company in the US. The combination will create a multi-branded PC-company with more than $15 billion in revenues and shipments in excess of 20 million PC units per year.
Gateway’s struggled to compete against Dell and HP in recent years, while Acer has been looking to grab a foothold in the United States market.
“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.
Topics: Gateway Notebooks, news |
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[...] Acer — the third largest PC company globally — just announced a definitive agreement to acquire Gateway. The acquisition has been approved unanimously by both boards and is expected to close by December 2007. You know, following the usual international, anti-trust approvals. Sure seems like a win-win what with Gateway steadily losing market share (but still tied for third largest PC maker in the US) while finally giving Acer a dominant position in the Americas to match their aggressive growth in Europe and Asia. From the looks of the press release, it would appear that the Gateway (and eMachines) brands will continue under Acer’s new “multi-branded company.” Fine, but could we now get rid of the cow spots, please? It’s not 1985 anymore. [Via Notebooks] [...]
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[...] Acer to Acquire Gateway, Forms World’s 3rd Largest PC Company [Notebooks.com] tr { border: 0px } td { cellborder: 10px} table { border: 1px solid black } [...]
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[...] acquires Gateway; becomes 3rd largest PC company Hmmm …. I guess this is what consolidation is all about.Shame really; I had a Gateway laptop years ago. Loved it. Great machine and dirt cheap.I remember [...]
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[...] Bell afin de percer le marché européen au nez et àla barbe d’Acer qui a énervé le géant ? JT Lang, PDG d’Acer : Cette transaction stratégique est une étape importante dans la longue histoire d’Acer. [...]
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Interesting…
I Have A Acer Lap Top Computer That Has Pass Word In Bios System. I Forgotton Pass Word.I Would Like Some Help Or Some Instruction To
Eliminate The Pass Word.