Geekzone: technology news, blogs, forums
Guest
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.
Acer to Acquire US-Based Gateway
Posted on 27-Aug-2007 22:59 | Tags Filed under: News



Acer Inc. has entered into a definitive agreement to acquire Gateway, Inc.. Gateway is the fourth largest PC company in the US and a leading retail PC provider. The combination will create a multi-branded PC-company with over US$15 billion in revenues and shipments in excess of 20 million PC units per year.

Under the terms of the agreement, Acer will commence a cash tender offer to purchase all the outstanding shares of Gateway for $1.90 per share, which represents total equity value consideration of approximately $710 million. The acquisition has been unanimously approved by the boards of directors of both Gateway and Acer and is subject to standard closing conditions, including approval under Hart Scott Rodino, Exon Florio and similar laws outside the U.S. The acquisition is expected to close by December 2007.

Gateway is currently in discussions with a third party with regards to a sale of its U.S. based Professional business.

The companies says the combination of their operations 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.

Some 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.






comments powered by Disqus


Trending now »

Hot discussions in our forums right now:

Tipping? Please no!
Created by BlueShift, last reply by MikeAqua on 24-May-2017 16:22 (93 replies)
Pages... 5 6 7


Bombing at Manchester concert, 19 dead
Created by Rikkitic, last reply by shk292 on 25-May-2017 18:04 (114 replies)
Pages... 6 7 8


Father banned from watching daughter's netball game: what you think of this?
Created by Rikkitic, last reply by frankv on 25-May-2017 16:29 (136 replies)
Pages... 8 9 10


Tailgaters?
Created by Linuxluver, last reply by reg52nz on 25-May-2017 16:29 (113 replies)
Pages... 6 7 8


The President Of The USA: Donald Trump
Created by TimA, last reply by kingdragonfly on 23-May-2017 07:44 (4357 replies)
Pages... 289 290 291


Variable speeds on Fibre Max
Created by kapitikarl, last reply by Athlonite on 25-May-2017 20:36 (34 replies)
Pages... 2 3


New Surface Pro Tablets
Created by Krishant007, last reply by timmmay on 24-May-2017 19:20 (15 replies)

Automate "Dumb" Heatpump
Created by Paul1977, last reply by richms on 24-May-2017 11:26 (46 replies)
Pages... 2 3 4