Guide Note:

Taiwan computer manufacturer Acer Inc. purchased Irvine, California-based Gateway, Inc. in October 2007 for $710 million.¹ One of the reasons Acer made the purchase was to increase the company's presence in the United States. J.T. Wang, Chairman of Acer, stated: "The acquisition of Gateway and its strong brand immediately completes Acer's global footprint, by strengthening our US presence."² On August 27, 2007, the board of directors of both companies agreed to the terms of the sale.

Fast Facts:

1. Gateway is the fourth largest PC company in the U.S.²
2. Purchase per/share price: $1.90/share
3. Financial advisor to Acer: Citigroup Global Markets Inc.
4. Financial advisor to Gateway: Goldman, Sachs & Co.
5. The $1.90/share price represents a 57% premium over the stock price at the close of business on August 24, 2007³
6. Gateway all-time high stock price: $82.50⁴
7. Acer is traded on the Taiwan Stock Exchange as: 2353
8. Acer was founded by Stan Shih in 1976