Acer has entered into a definitive agreement to acquire E-TEN Information Systems Co., Ltd., the 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 has been unanimously 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.
Acer expect the acquisition to close during Q3 2008.
After conquering the market of notebooks, breaking into the market of smartphones can be an important strategic decision for Acer, since according to analysts there is a 30% growth expected until 2011. Acer had a very agressive policy in conquering the majority of the laptop market and they are expected to hold on to the same strategy on the market of ultraportable devices.
Translated by Szaszati
