It's no secret that Gateway has been struggling in recent months as it tries to overtake rivals Dell and HP in the consumer PC market with little success. Acer has been in an equally dismal situation in the US market, with a market share just slightly lower than Gateway's.
This morning, Acer announced that it would be buying Gateway for the princely sum of $710 million. This will make Acer/Gateway the #3 PC manufacturer with a combined market share of 10.8% in the US. They will still trail the nearest competitor, Hewlett-Packard by nearly 13%.
This merger will also place Acer in the global #3 spot, edging out Lenovo, who is currently in talks to purchase Packard Bell. It seems like the smaller players in the PC market are going merger-crazy in an attempt to take on the big boys. Things should get interesting in the PC market in the next 12 months.