Acer to Acquire Gateway in $710-Million Deal

Putting an end to the rumors, PC vendor Acer Inc. announced today that it has entered into a definitive agreement to acquire Gateway Inc., the fourth-largest PC company in the United States. Acer is now the third-largest PC company, behind Dell and Hewlett-Packard. The announced combination will create a multibranded PC company with more than $15 billion in revenue and shipments in excess of 20 million PC units per year.

Under the terms of the agreement, Acer will buy Gateway for $710 million. (Those fearing an end to Gateway's signature black-and-white cow branding have little reason to worry; Acer plans to keep the Gateway brand just the way it is.) On a worldwide basis, the merger pushes Taiwan's Acer to the No. 3 position, replacing Chinese rival Lenovo.Acer to Acquire Gateway in $710-Million Deal