Acer to Acquire Taiwanese Smartphone Maker E-TEN Information Systems
March 07, 2008
Taiwan-based PC maker Acer announced on March 5 that it has reached an agreement with Taiwanese Smartphone maker E-TEN Information Systems. Via the acquisition, Acer is expected to make official entry into the Smartphone industry, Taiwan's Economic Daily News reported.
As per the agreement, Acer will acquire 100% of E-TEN by stock swap at a ratio of one Acer share for 1.07 E-TEN shares. Total transaction amount is estimated at approximately NT$9 billion (US$292.4 million; US$1=NT$30.7). The deal values E-TEN at 22% to 23% premium, and E-TEN will become Acer's wholly-owned subsidiary after the transaction.
Acer is expected to retain E-TEN's Glolfiish brand intact in the initial phase. The company plans to roll out new products under the Acer brand starting in the third quarter of 2008. The transaction is scheduled to be finalized by September 2008.