Acer today announced that it has entered a definitive agreement to acquire E-TEN, a manufacturer of smartphones. Here is the press release:
"Acer Inc. (TWSE 2353), the world's third-largest branded PC vendor (source: Gartner 4Q 2007) today announced it has entered into a definitive agreement to acquire E-TEN (TAIEX 2432), the world-renowned 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 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.
We expect the acquisition to close during Q3 2008.
Mobility is in constant evolution. To stay ahead of the changes, the technology and applications must adapt to the true needs of business and consumer users alike.
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.
With a strong reputation for R&D and the customer-oriented culture of both companies, combined with Acer?s considerable and now global marketing power, E-TEN will help Acer explore and develop entirely new solutions for mobile communication.
?This strategic transaction is yet another important milestone in Acer?s long history of innovation? said J.T. Wang, Chairman 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?.
E-TEN has released a number of hugely successful Pocket PC phones that featured combinations of GPRS, Wi-Fi, Bluetooth, GPS, and 3.5G GSM functionality each enhanced by exclusive in-house developed software applications.
In 2006, in recognition of the fact that its consumer orientated devices were proving just as successful as the company?s IT centric product lines, E-TEN showed its commitment to the consumer sector by adopting the new brand name, Glofiish, for its Pocket PC Phones and accessories.
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."