Acer to acquire E-TEN

Acer has announced that it has entered into a definitive agreement to acquire E-TEN Information Systems Co., Ltd. which is a designer and manufacturer of smart handheld devices.


Under the terms of the agreement, Acer Inc. will offer a share exchange with ratio of 1: 1.07 for all the outstanding shares of E-TEN, which represents total equity value consideration of approximately NT$9 billion. The new issued shares will represent approximately 6% of total Acer outstanding shares.

The acquisition of E-TEN is in line with Acer’s expansion strategy and follows the recent acquisition of Gateway and Packard Bell, further strengthening its foothold in the fast-evolving mobile communications segment and completes Acer’s range of mobile solutions.

“This strategic transaction is yet another important milestone in Acer’s long history of innovation,” said J.T. Wang, Chairman and CEO of 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.” “The worldwide smart phone market is estimated to grow by more than 30% by 2011,” added Gianfranco Lanci, President of Acer Inc. “Acer will enhance the competitiveness in the ultra mobile segment, by combining PC and communication technologies”.

The acquisition will expected to close in Q3 2008.


Source Acer