Acer to buy Gateway

PC vendor Acer has announced it is to acquire California, US-headquartered company Gateway for $710 million.

Acer, the leading player in the EMEA notebook sector, said the purchase would enable it to expand its global footprint and consolidate its position as the world's third largest PC firm.

"The acquisition of Gateway and its strong brand immediately completes Acer's global footprint, by strengthening our US presence. Upon acquiring Gateway, we will further solidify our position as number three PC vendor globally," JT Wang, chairman of Acer stated.

Gateway is the fourth largest PC company in the US and a leading retail PC provider.

The combination of the two firms will create a PC company with over $15 billion in revenues and shipments in excess of 20 million PC units per year, Acer said. Acer president Gianfranco Lanci added that the two firms' geographical presences and product positions were highly complementary. "We believe that our combined scale will lead to significant efficiencies," he said.

Acer said it expects to realise pre-tax synergies for at least $150 million through the deal, without specifying a timeframe.