Acer Inc. plans to acquire U.S. computer maker Gateway Inc. for $710 million in a deal that will push the Taiwanese company past China's Lenovo Group as the world's third largest vendor of personal computers.
Acer said Monday it is offering to buy Gateway for $1.90 per share in a deal expected to close by December, pending regulatory approvals in Taiwan and the U.S.
The offer price amounts to a premium of 57 percent to Gateway's Friday closing price of $1.21. Gateway traded at $81.50 in 1999.
Gateway shares jumped nearly 49 percent, or 59 cents, to $1.80 Monday.
The acquisition has been unanimously approved by the boards of directors of both Gateway and Acer and is subject to standard closing conditions, it said.