Acer completes tender offer for Gateway

By Lisa Kerner

Charlotte, N.C., Oct. 16 - Acer Inc. subsidiary Galaxy Acquisition Corp. completed its $1.90-per-share tender offer for Gateway, Inc.

Some 322,931,202 shares, or about 86.09%, of Gateway's outstanding stock were validly tendered in the offer ended Oct. 10.

"Because of the friendly and cooperative spirit of this acquisition, we look forward to a seamless integration of Gateway," Acer chairman and chief executive officer J.T. Wang said in a company news release.

"Our enhanced global footprint and leading multi-branded strategy will be extremely valuable for our customers and will drive growth for the combined company in the years ahead," Wang added.

Galaxy Acquisition plans to exercise its option to purchase additional shares directly from Gateway to give Galaxy ownership of more than 90% of Gateway's outstanding shares. The subsidiary will merge with and into Gateway, with Gateway continuing as the surviving corporation and as an indirect wholly owned subsidiary of Acer, the release stated.

On Aug. 27, Acer announced it would acquire Gateway, an Irvine, Calif., personal computer company, in a $710 million deal.

Acer is a branded personal computer vendor based in Taipei, Taiwan.

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