News Brief

Acer's Gateway Buy Makes It 3rd-Largest PC Vendor

Taiwan-based Acer announced Monday that it has entered into an agreement to acquire the long-struggling Irvine, Calif. PC maker Gateway for $710 million, or $1.90 per share.

Gateway's brand became known for the cow-spotted boxes used to ship products, and philosophy for selling made-to-order computers.

The deal creates a multi-branded conglomerate with more than $15 billion in revenue and shipments in excess of 20 million PC units annually. The combined company steps in front of China's Lenovo Group to become the third-largest vendor of personal computers, behind Hewlett-Packard and Dell.

The acquisition has been approved by the board of directors of both Gateway and Acer and is subject to standard closing conditions, including approval under Hart Scott Rodino, Exxon Florio and similar laws outside the U.S. The acquisition is expected to close by December.

Citigroup Global Markets Inc. acted as the financial advisor to Acer; Goldman, Sachs & Co. served as the financial advisor to Gateway.

--Laurie Sullivan