Acer to build own-brand cloud after iGware buy

Chinese PC titan to create Acer Cloud to manage all compute platforms after acquiring US firm for $320m

PC vendor Acer is to build out its own cloud infrastructure after acquiring US-based specialist iGware.

The deal has been agreed for $320m (£198m), with a further $75m payable, subject to the fulfilment of a performance-based earn-out clause. The Californian firm specialises in cloud-based device ecosystems, virtual consoles and personal cloud technology.

Its technology reportedly supports more than 100 million devices across the world, including Nintendo consoles such as the Wii and the 3DS. Once the acquisition is closed, iGware will be renamed the Acer Cloud Technology Company.

In the mid to long term, the Chinese PC giant aims to build out the Acer Cloud, wherein end users can manage all their computing devices. The development of its own cloud infrastructure will prove a key differentiator over the next decade, claimed Acer.

JT Wang, chief executive of Acer, said: "iGware offers expertise in cloud technology software design, with services already deployed on a large-scale and long-term basis. As a mid- to long-term investment objective, the valuable core technology and capabilities will help create uniqueness for the Acer brand, and support a vast number of our users based on open platforms."

Wei Yen, chairman of iGware, added: "This merger will provide a significantly larger platform to further develop and extend our technologies to Acer's global customers. At the same time, it will allow us to continue working closely with our existing partners and build additional strategic relationships with others."