Acer to acquire Gateway for $710 million

— 10:43 AM on August 27, 2007

Consolidation is looming in the PC market. An Associated Press report quoted by Yahoo News says Taiwanese computer maker Acer is planning to acquire its U.S. rival Gateway. Acer will shell out a cool $710 million as part of the deal, which should place the firm in the number three spot behind Dell and HP in terms of worldwide market share. The acquisition has already been unanimously approved by the boards of directors of both Acer and Gateway, and the transaction is expected to close in December.

Buying out Gateway should help boost Acer's "relatively weak" presence in the United States, according to an IDC analyst quoted by the AP. Indeed, Acer currently ranks sixth in the U.S. market, while Gateway is in the third spot behind HP and Dell. Acer isn't doing so badly on an international scale, though: its worldwide market share is currently fourth behind that of Lenovo, Dell, and HP.

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