Acer :: To Acquire Gateway

It was announced this morning that Acer will be acquiring Gateway for $710 million in cash. The newly formed "multi-branded" company (the Gateway name will stay in the US) will be formed by December 2007 (provided they pass the usual regulatory scrutiny) and has been unanimously approved by the boards of both companies.

So what does this mean for us? The buyers?

According to the press release, prices will end up lower across the board because they will be able to leverage the best of each company to lower costs. That's something that we always like to hear.

Quote:

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........................