Business Insight Zone

When you hear “Acer versus Lenovo,” think “Hatfields versus McCoys.”* Recently we talked about Lenovo’s plans to expand into Europe by acquiring the Packard Bell. But now Acer has struck back with its own announced plan to buy PC maker Gateway. And therein hangs a tale, as Bruce Einhorn of BusinessWeek explains:

Acer Hits Lenovo With Gateway Deal

…Acer had been rumored to be looking at Packard Bell, too, and the announcement early this month that Lenovo had the edge in the race to acquire it was a blow to the Taiwanese [Acer]. Now, however, Acer is able to prevent Lenovo from proceeding with the Packard Bell deal. That’s because Gateway happens to have right of first refusal to buy Packard Bell, and at the same time that Acer announced its purchase of Gateway, it also said that the American company plans to exercise that right of first refusal, taking a prize away from Lenovo and giving it to Acer.

So, Acer’s $700+ million for Gateway does more than add Gateway’s footprint to its own; it also spites the company’s #1 rival. Not a bad bargain for Acer. It will be interesting to see how — or if — Lenovo can respond.

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* True, the actual Hatfields and McCoys buried the hatchet in 2003 after a mere 130 years of feuding. But I’m sure I’ll be using the metaphor for the rest of my life anyway.

Category: Deals, Technology