Acer buys handheld firm

After snapping up PC outfit Packard Bell, Taiwanese vendor adds smart handheld device manufacturer to cart

Aggressive PC vendor Acer has announced that it has agreed to acquire E-TEN, a Taiwan based manufacturer of smart handheld devices.

The deal is an all-stock purchase and will see Acer offering one of its own shares for every 1.07 of the outstanding shares of E-TEN in an agreement worth around NT$9bn (£146m). The acquisition has been unanimously approved by the board of directors of both companies.

Acer expects the deal to account for around six per cent of its outstanding shares and estimates that the acquisition will close during the third quarter of this year.

Acer chairman J.T Wang said: "This strategic transaction is yet another important milestone in Acer's long history of innovation. The acquisition of E-Ten increases Acer's global footprint by giving us a strong and highly credible presence in the mobility segment."

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