Acer on Tuesday said that it had completed acquisition of Gateway, a leading maker of personal computers from the U.S. The takeover will significantly improve Acer’s market positions and will help to better compete against companies like Dell, HP and Lenovo.

“I want to thank all of the teams who have made this such a successful and swift transaction. Because of the friendly and cooperative spirit of this acquisition, we look forward to a seamless integration of Gateway. We welcome Ed Coleman and the talented team at Gateway into the Acer family and we are delighted by the enthusiasm with which Gateway employees and clients have reacted to joining our group,” said J.T. Wang, chairman and chief executive of Acer.

Under the terms of the agreement, Acer purchased all the outstanding shares of Gateway for $1.90 per share, which represents total equity value consideration of approximately $710 million. Gateway common stock were suspended from trading on New York Stock Exchange as of the close of business on Tuesday, October 16, 2007.

At the time of the acquisition, Gateway was in process of acquiring France-based PC maker Packard Bell. Acer agreed to fund this takeover process as well in a bid to further expand its market presence and now allow its rival Lenovo Group to buy the European maker of personal computers.

In Q2 2007 Acer commanded 7.2% of the global PC market, Gateway had approximately 1.57% market share, while Packard Bell owned roughly 2% of the market. The combined company will be able to claim over 10% of the market, which will make it the world’s No. 3 supplier of personal computers. Acer will be able to substantially leave Lenovo behind in terms of shipments, however, Dell will still be considerably larger with 15% of the worldwide personal computer shipments.

Going forward Acer said it would not discontinue Gateway brand-name, therefore, the U.S.-based PC maker will continue to supply products under its own name.

“Our enhanced global footprint and leading multi-branded strategy will be extremely valuable for our customers and will drive growth for the combined company in the years ahead,” said Mr. Wang.