Acer to buy Gateway

By Michael Santo
Executive Editor, RealTechNews

Taiwan’s Acer has announced it will buy struggling computer vendor Gateway, in a deal worth $710 million. This will create the world’s #3 largest PC maker. At the same time, Gateway dealt a blow to Lenovo by announcing its intention to buy Packard Bell.

Lenovo’s plans were set back when Gateway declared on Monday that it would exercise its right to take a first attempt at buying the parent of European-focused PC maker Packard Bell.

The Chinese PC giant has said it was in talks to buy Paris-based Packard Bell, hoping to expand its presence in a European consumer market where it is relatively weak.

Acer said it would pay $1.90 per Gateway share, representing a premium of 57 percent over Gateway’s last closing price. The U.S. firm’s stock rose 59 cents, or 49 percent, in pre-market trading on Monday to $1.80, from a Friday close of $1.21. Source: Reuters

We Say: Gateway hasn’t excited me for 10 years, since the last time I bought any products from them. Acer really hasn’t done anything for me either, though their laptop line did garner some attention from me during my last buying foray.