Advertisment

Acer to acquire E-TEN

author-image
CIOL Bureau
Updated On
New Update

BANGALORE, INDIA: Acer Inc. today announced it has entered into a definitive agreement to acquire Taiwan-based E-TEN Information Systems Co. Ltd, designer and manufacturer of smart hand-held devices.

Advertisment

According to the agreement, Acer will offer a share exchange with a 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 newly-issued shares will represent approximately 6 per cent of total Acer outstanding shares. “This strategic transaction is yet another important milestone in Acer’s long history of innovation,” said JT 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,” he said.

Advertisment

The acquisition has been approved by the boards of directors of both E-TEN and Acer and is subject to standard closing conditions, including obtaining approval from shareholders meetings and the governmental regulators.

The acquisition is expected to close by Q3 2008.

“The worldwide smart phone market is estimated to grow by more than 30 per cent by 2011,” said Gianfranco Lanci, president of Acer Inc. "Acer will enhance the competitiveness in the ultra mobile segment, by combining PC and communication technologies.”

tech-news