Home
Global Supplier Directory
APPLIANCE Engineer
Supplier Solutions
APPLIANCE Line
Whitepaper Library
Calendar of Events
Association Locator
Contents Pages
Market Research
Subscription Center


 
Daily News

Gateway Looking to Acquire eMachines
Feb 3, 2004
 Printable format
 Email this Article
 Search

PC maker Gateway Inc. has announced a U.S. $253 million deal to acquire privately held eMachines Inc.

The transaction calls for Poway, CA, U.S.-based Gateway to pay eMachines 50 million shares of its common stock and $30 million in cash. Should eMachines break off the deal and find another buyer, it would have to pay Gateway a termination fee of roughly $8 million.

Gateway, which late Jan. 29 posted its 12th loss in the past 13 quarters, said a major reason for buying Irvine, CAA, U.S.-based eMachines is the company's lean cost structure, which Gateway intends to adopt.

"We clearly needed a scale increase in PCs," said Ted Waitt, Gateway's founder and CEO, during a conference call with analysts. "Our cost structure was still too high."

The deal also brings Gateway a leader in the low-end PC market, which the computer maker has struggled to crack, Mr. Waitt added. Gateway, which will become the third-largest desktop maker when this deal closes later this quarter, has been trying to expand into consumer electronics to broaden its offerings beyond the sluggish PC market. But the deal for eMachines highlights the importance Gateway still places on competing in its core market, said Piper Jaffray & Co. analyst Ashok Kumar.

EMachines clawed its way to be a top provider of cheap PCs only after a long, hard struggle. In 2000 the company, hobbled by slowing sales, a falling stock price and poor product quality, was a poster child for the troubled computer industry. That year, when it went public, eMachines lost $220 million on annual sales of $684 million; it delisted from Nasdaq in May 2001. (The Daily Deal/Deal.com)

Back to Daily News

 

Daily News

...........................................................

Oct 21, 2014: AHRI Annual Meeting Registration Remains Open

Oct 20, 2014: Electrolux 3Q Operating Income up 29%

Oct 17, 2014: Whirlpool completes purchase of majority interest in Indesit

Oct 17, 2014: Corrected: AHRI Annual Meeting Registration Remains Open

Oct 17, 2014: Walmart will moderate brick-and-mortar growth and increase capital spending on e-commerce capabilities

More Daily News>>

RSS Feeds
.........................................................
Appliance Industry
Market Research

...........................................................

September 2014: Appliance Industry Focus: HVAC
June 2014: Appliance Magazine Market Insight: April 2014
May 2014: Appliance Magazine Market Insight: March 2014
April 2014: Appliance Magazine Market Insight: February 2014




 
Contact Us | About Us | Subscriptions | Advertising | Home
UBM Canon © 2014  

Please visit these other UBM Canon sites

UBM Canon Corporate | Design News | Test & Measurement World | Packaging Digest | EDN | Qmed | Plastics Today | Powder Bulk Solids | Canon Trade Shows