The worlds number three PC vendor Acer announced today that it will acquire Gateway the number three US supplier for about $710 Million dollars based on $1.90per share price. The acquisition is expected to close by December 2007, so pretty quick.
Acer who has a strong brand outside the US market is looking to buy some brand name recognition here state side it seems. Will it be affective? Even though Gateway is touted as the number 3 brand in the US it has been a long time since I personally have considered them a strong brand. The Gateway value line e-machines doesn't even carry any prominent Gateway branding when you see them in stores and might be an even stronger brand name at this point. Will Acer kill off one of these brand names in the process of absorbing Gateway?
Even more interesting is that Gateway has an agreement with the largest Packard Bell shareholder that gives them the first right of refusal meaning they can squash any potential deal between Packard Bell and Lenovo. This might leave Acer owning both companies after all is said and done.
What are your thoughts on all this?
Posted
Aug 27 2007, 03:18 PM
by
Josh Phillips
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