Electronics Production | August 27, 2007
Acer to acquire Gateway
Acer announced today it has entered into a definitive agreement to acquire Gateway, Inc. Gateway is the fourth largest PC company in the US and a 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 earlier announced that it intends to exercise its Right of First Refusal to acquire from Lap Shun (John) Hui, all of the shares of PB Holding Company, S.ar.l, the parent company for Packard Bell BV - a leading European PC vendor based in France. In addition, Gateway is currently in discussions with a third party with regards to a sale of its U.S. based Professional business. "This strategic transaction is an important milestone in Acer's long history" said J.T. Wang, Chairman of Acer. "The acquisition of Gateway and its strong brand immediately completes Acer's global footprint, by strengthening our US presence. This will be an excellent addition to Acer's already strong positions in Europe and Asia. Upon acquiring Gateway, we will further solidify our position as number three PC vendor globally." Gianfranco Lanci, President of Acer, added, "Both Acer's and Gateway's geographical presences and product positioning are highly complementary. We believe that our combined scale will lead to significant efficiencies. Gateway has built one of the industry's most powerful and unique brands and with this acquisition, we will have the opportunity to implement an effective multi-brand strategy and cover all the major market segments. In time, we intend to actively manage our brand portfolio and differentiate our brands to address different consumer segments. We are also acquiring a world-class team and Gateway's employees will be critical to our combined success." "We believe our complementary geographical and product mixes, and our mutual focus on the consumer market makes Acer an outstanding partner for Gateway." explained Ed Coleman, CEO of Gateway. "Joining with Acer will enable us to bring even more value to the consumer segments we serve and capitalize on Acer's highly regarded supply chain operations and global reach to expand the scope of the Gateway and eMachines brands around the world. Acer has made impressive strides in the global PC market and the board and I welcome this merger." The combination of Acer and Gateway 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. 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. Citigroup Global Markets Inc. acted as exclusive financial advisor to Acer; Goldman, Sachs & Co. served as exclusive financial advisor to Gateway.
Eguana inks deal for residential energy storage systems Eguana Technologies Inc. has entered into a development contract with an unnamed renewable energy company to develop and certify proprietary residential storage systems for distribution through its sales channels across global markets.
BlueRing Stencils picks up Stone Mountain Tool BlueRing Stencils has acquired Georgia-based tooling supplier Stone Mountain Tool.
Bosch increases its stake in fuel-cell expert Ceres Power Bosch has increased its stake in Ceres Power from 3.9% to circa 18%. Bosch’s total investment in the company will be approximately 90 million euros.
Haldex Heidelberg staff urges management to reconsider the closure It was back in October of 2019 that Haldex announced that it was streamlining its production in Europe, a decision that would see the move of production from Heidelberg in Germany to Szentlörincskáta in Hungary.
Sponsored content by CMLCML manufactures Metal Substrate solutions Printed circuit boards (PCBs) plays an important role in our day to day life. Whether it’s the car you’re driving, the phone that you’re scrolling through or computers that you’re sending emails from. What happens when you use heat generating components on a PCB? That’s right, cooling is needed!
Foxconn’s Gou: WI plant operational this year Foxconn Technology Group founder Terry Gou is indicating that the company’s new manufacturing facility in Mount Pleasant, Wisconsin, still currently under construction after multiple slowdowns, will generate products beginning this year.
Zentech acquires Trilogy Circuits LLC Zentech Manufacturing has acquired Texas-based Trilogy Circuits LLC, a provider of EMS services to military primes and other high-reliability industries in Texas and across the United States.
Markus Jeck to take lead of Enics Switzerland EMS provider Enics has appointed Markus Jeck as the new General Manager of Enics Switzerland.
Hanwha Precision Machinery launches tech centre in Germany Hanwha Techwin Automation Americas' – formerly Samsung C&T Automation – unit, Hanwha Precision Machinery, has launched an integrated tech centre for Europe in Germany to accelerate its global expansion.
TTM Technologies to sell four China manufacturing plants TTM Technologies is executing a definitive agreement under which the company has agreed to divest its four China manufacturing plants – which make up substantially all of the assets of its Mobility business unit.
Incap acquires AWS Electronics EMS provider Incap has signed an agreement to acquire 100% ownership of AWS Electronics Group.
Ampleon, Rochester Electronics ink deal RF power products supplier Ampleon and semiconductor manufacturer Rochester Electronics have forged a strategic partnership to extend the global supply of Ampleon’s VDMOS portfolio of high-performance RF transistors.
Trust Automation appoints new COO California-based Trust Automation Inc., a supplier of automation technology for industrial and defense applications, has welcomed Teddy Ross to the company as chief operations officer, effective immediately.
TDK Ventures invests in SLD Laser TDK Ventures Inc., a subsidiary of TDK Corporation, has invested in SLD Laser, a specialist in the use of gallium nitride (GaN) in the commercialization of visible laser light sources for multiple applications including automotive, mobility, medical, and specialty lighting.
Sono Motors hits its target - community funding works The Munich-based mobility provider Sono Motors has successfully completed the extension of its campaign to finance the company and has exceeded its target of EUR 50 million.
New group structure at Mycronic aimed securing future growth Swedish creator of production equipment, Mycronic, has grown quite a bit during the last years; both organically but also through acquisitions. And with that growth some structure is in order.
Zenuity and HP Enterprise team up to develop next-gen autonomous driving cars Hewlett Packard Enterprise (HPE) has been selected by Zenuity, a Swedish developer of software for self-driving and assisted driving cars, to provide the crucial artificial intelligence (AI) and high-performance computing (HPC) infrastructure it needs in order to develop next generation autonomous driving (AD) systems.
Honeywell, Lockheed Martin win NASA contracts Honeywell and Lockheed Martin have both announced recent contracts for the supply of key components to NASA’s Orion spacecraft fleet for the upcoming Artemis lunar missions.
Libra Industries welcomes new VP EMS provider Libra Industries has welcomed David Chavez to its leadership team as the new VP of Integrated Business Development.
Danfoss shuts down site – hundreds of jobs lost Danish industrial group, Danfoss, is taking steps to optimise and strengthen its competitiveness. This will result in a closure of the groups manufacturing site in Kolding, Denmark. Production from the site will be moved to the groups manufacturing location in Poland.
USI builds its third antenna chamber measurement system USI is currently building its third antenna chamber measurement system with a targeted completion date in the first quarter of 2020.
AT&S receives NADCAP accreditation With the NADCAP accreditation, new doors in the aerospace sector has been opened for the Austrian company.
Toshiba Carrier to establish new manufacturing subsidiary in Europe Toshiba Carrier Corporation announced the establishment of a new manufacturing subsidiary in Gniezno, a mid-western city of Poland.
Ericsson opens new R&D site in France Ericsson says it will establish a new R&D site in France with up to 300 employees, accelerating 5G momentum in Europe.Load more news