Acer is acquiring Gateway to become the third largest PC vendor

Plans are afoot for Acer to acquire Gateway in a $710 million deal that is poised to make Acer the world's third largest PC vendor.

J.T. Wang, Acer's chairman, speaking at a news conference in Taipei declares that, "This is the biggest acquisition in Acer's 30 year history."

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Apparently, Acer's acquisition deal with Gateway also comes hand-in-hand with its derailment of rival Lenovo Group's plans to acquire Packard Bell.

Here's an excerpt from Network World:

Alongside the acquisition deal with Acer, Gateway unveiled plans to exercise its right of first refusal to acquire shares in Packard Bell's parent company, PB Holding. SARL, from John Hui. Hui is the founder of eMachines, which Gateway acquired in 2004, and the largest shareholder in Packard Bell.

Certainly, this is a well-timed slap in the face.  In 2006, the combined number of PCs shipped by both Acer and Gateway totaled 18.6 million PCs.  Lenovo, on the other hand, shipped 16.6 million. The big question raised by analysts is really how smoothly the integration process will be, but only time will tell.

In the meantime, declining desktop shipments not withstanding, share your criteria for selecting a desktop PC vendor for your company.


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Paul Mah is a writer and blogger who lives in Singapore, where he has worked for a number of years in various capacities within the IT industry. Paul enjoys tinkering with tech gadgets, smartphones, and networking devices.