Acer, the world’s third largest PC vendor, has signed an agreement to buy handheld device maker E-Ten Information Systems of Taiwan.

The acquisition will put Acer in the position to market and further develop a range of handheld devices, including smartphones and GPS devices. E-Ten has developed and sold several smartphone models over the past several years, including its Windows Mobile 6.0-based Glofish smartphone with GPS (global positioning system), in addition to other handheld electronic devices such as GPS devices and pocket PCs.

The deal is an all-stock transaction valued at NT$9 billion (US$291.3 million). Acer is offering to exchange one share of its stock for every 1.07 shares of outstanding E-Ten stock to pay for the deal.

The boards of directors at both companies have already approved the deal, but they still face shareholder votes and approval by government regulators.

The companies expect the deal to close in the third quarter of this year.

Acer cited mobility products as the main reason for the purchase, especially smartphones.

“The acquisition of E-Ten will allow Acer to play a key role in the development of the dynamic, fast-evolving market of smart handheld devices as well as ultra mobile devices in the future and will help bring Acer’s cutting edge mobile solutions to an even wider audience,” Acer said in a statement.

The E-Ten deal follows a string of acquisitions by Acer, including the purchase last year of PC maker Gateway and the recent deal to buy Packard Bell, the European electronics maker.

source : acer news

About Acer

Founded in 1976, Acer ranks among the world’s top four branded PC vendors and second in EMEA Region (source Gartner 3Q 2006). In 2000, Acer spun-off its manufacturing operation to focus its resources on developing technologically advanced, user-friendly solutions. Acer is the EMEA region leader in the notebook sector, holding 20,9% market share in Q3 2006. In the global PC market Acer ranks first in Russia, the Czech Republic and in Poland.

Acer’s product range includes PC notebooks and Desktops, servers and storage systems, monitors, peripheral devices, digital devices, LCD TVs and e-business solutions for business, Government, Education and home users. Acer employs 5,600 people throughout the world and has created a consolidated sales and service network in more than 100 countries. Revenues reached US $9,7 billion in 2005.

About E-TEN

Established in 1985, publicly listed in 2000 (TAIEX 2432), E-TEN has grown to become a world distinguished manufacturer of smart handheld devices. The company’s history of success began with the development of the first Chinese language input system for DOS based computers. E-TEN’s software was instrumental in helping introduce the personal computer revolution to Chinese markets and became a standard for international communications that is still in use today.