Acer expects to complet Gateway takeover
By Dave Dreeszen Journal business editor | Posted: Wednesday, October 17, 2007
NORTH SIOUX CITY -- Acer Inc. said it expects today to complete its $710 million acquistion of Gateway Inc., the once high-flying PC maker that got its start in Sioux City more than two decades ago.
More than 86 percent of Gateway shareholders approved the purchase, paving the way for the deal to close. . A tender offer of $1.90 per share for Gateway stock expired at 5 p.m. Oct. 10. Gateway common stock (GTW) will cease to trade on the New York Stock Exchange.
Gateway, co-founded by Ted Waitt and Mike Hammond in a Sioux City farmhouse in 1985, announced in late August it had agreed to be acquired by Taiwan-based Acer in a deal that creates the world's fourth largest PC maker.
Gateway will operate under its own name as a wholly-owned Acer subsidiary. Acer has not publiclly disclosed its long-range plans for Gateway's North Sioux City complex, where roughly 450 employees now are based. Another 450 former Gateway employees in North Sioux City are transitioning to Idaho-based MPC Corp., which earlier this month closed on a $90 million deal for Gateway's professional division.
During a recent visit, Acer President Gianfranco Lanci reportedly told the remaining Gateway workers the new owners planned no immediate changes at Gateway's cow-spotted complex in North Sioux City.
North Sioux is home to Gateway's direct consumer sales division, as well as some system wide support functions, such as accounting, human resourcs and marketing. In addition, a 130-employee "best practices'' tech support center opened there last year.
The Gateway deal gives Acer increased access to big-box U.S. retailers like Best Buy and Wal-Mart. Through the transaction, Acer also will acquire PC maker Packard Bell, which Acer's Asian rival, Lenovo Group, also had been trying to acquire. Last week, Gateway announced its intent to exercise its right of first refusal to acquire France-based Packard Bell, which has a strong following in western Europe.
More than 86 percent of Gateway shareholders approved the purchase, paving the way for the deal to close. . A tender offer of $1.90 per share for Gateway stock expired at 5 p.m. Oct. 10. Gateway common stock (GTW) will cease to trade on the New York Stock Exchange.
Gateway, co-founded by Ted Waitt and Mike Hammond in a Sioux City farmhouse in 1985, announced in late August it had agreed to be acquired by Taiwan-based Acer in a deal that creates the world's fourth largest PC maker.
Gateway will operate under its own name as a wholly-owned Acer subsidiary. Acer has not publiclly disclosed its long-range plans for Gateway's North Sioux City complex, where roughly 450 employees now are based. Another 450 former Gateway employees in North Sioux City are transitioning to Idaho-based MPC Corp., which earlier this month closed on a $90 million deal for Gateway's professional division.
During a recent visit, Acer President Gianfranco Lanci reportedly told the remaining Gateway workers the new owners planned no immediate changes at Gateway's cow-spotted complex in North Sioux City.
North Sioux is home to Gateway's direct consumer sales division, as well as some system wide support functions, such as accounting, human resourcs and marketing. In addition, a 130-employee "best practices'' tech support center opened there last year.
The Gateway deal gives Acer increased access to big-box U.S. retailers like Best Buy and Wal-Mart. Through the transaction, Acer also will acquire PC maker Packard Bell, which Acer's Asian rival, Lenovo Group, also had been trying to acquire. Last week, Gateway announced its intent to exercise its right of first refusal to acquire France-based Packard Bell, which has a strong following in western Europe.
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