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Acer completes Gateway purchase

Now to take on Dell, HP

Acer has acquired more than 90 percent of shares of Gateway, paving the way for completion of its takeover.

Acer announced in August a plan to buy US PC vendor Gateway for around $710m through a tender offer for the company's shares. Today Acer announced that an investment subsidiary set up to buy Gateway stock had finished the tender offer, and would soon finalise the deal.

The companies will formally merge within the next few days, and the deal will be closed by October 16, Acer said in a statement. Gateway's stock will cease to trade on the New York Stock Exchange by that date.

Analysis: Acer-Gateway means 'end of Acer PCs'

The Acer-Gateway deal, and a pending arrangement for Gateway to buy UK PC vendor Packard Bell, will put the Taiwanese company in a position to challenge HP and Dell for US market share, while blocking rival Lenovo from gaining ground in Europe through its planned purchase of Packard Bell, analysts say.

Gateway will continue to operate under its own name as a subsidiary of Acer, and the company expects to expand its product offerings.

Acer said it was gratified by the enthusiasm in which Gateway employees and clients have reacted to the acquisition.

In a separate statement, Acer said it borrowed NT$19.8bn ($607.2m) from Citibank for use in the Gateway purchase.


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