The world's third-largest branded PC vendor Acer Inc has acquired Taiwanese maker of smart handheld devices. E-TEN Information Systems Co, Ltd.
The acquisition has been unanimously approved by the boards of directors of both E-TEN and Acer and is now subject to standard closing conditions, including obtaining approval from shareholders meetings and the governmental regulators, with the transaction expected to close during Q3 2008.
Acer Inc. will offer a share exchange with ratio of 1: 1.07 for all the outstanding shares of E-TEN, representing a total equity value consideration of approximately NT$9 billion. The new issued shares will represent approximately 6 per cent of total Acer outstanding shares.
The acquisition is in line with Acer's expansion strategy and follows the recent acquisition of Gateway and Packard Bell, and will enable it to further strengthen its foothold in the fast-evolving mobile communications segment by completing Acer's range of mobile solutions.
"The worldwide smart phone market is estimated to grow by more than 30 per cent by 2011," said Gianfranco Lanci, president, Acer Inc. "Acer will enhance the competitiveness in the ultra mobile segment, by combining PC and communication technologies".
E-TEN has released a number of hugely successful Pocket PC phones that featured combinations of GPRS, Wi-Fi, Bluetooth, GPS, and 3.5G GSM functionality each enhanced by exclusive in-house developed software applications.
Both companies share a strong reputation for R&D and a customer-oriented culture. The acquisition will help Acer offer entirely new solutions for mobile communications to leverage Acer's global marketing reach.
"This strategic transaction is yet another important milestone in Acer's long history of innovation," said J T Wang, chairman and chief executive, Acer Inc. "The acquisition of E-TEN increases Acer's global footprint by giving us a strong and highly credible presence in the mobility segment."