Acer expands its WinMo department...by agreeing to buy E-TEN!

[Guest Monolithix]

[teaser]

Acer aren't completely new to the Windows Mobile market, however they've just agreed to buy E-TEN, producers of the popular glofiish range of handsets for a cool $290 million.

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This could be indicative of a move by Acer to try and move in on their rivals, more traditionally in the laptop market, Asus and their healthy WinMo line of products. From E-TEN's point of view, as the worlds 3rd largest PC laptop manufacturer, Acer's established brand and financial backing can only mean good things for fans of the glofiish range!

[phonescoop]

[glofiish]

[Guest Mysterious Stranger]

Acer aren't completely new to the Windows Mobile market, however they've just bought E-TEN, producers of the popular glofiish range of handsets for a cool $290 million.

Just being pedantic I know, but they haven't 'just bought E-TEN' - they've just announced they've 'agreed to acquire' E-TEN in the 3rd quarter 2008 with a share exchange for existing E-TEN share owners subject to shareholder approval and stockmarket closing conditions, assuming they get regulatory approval.

It's like announcing the release of a new handset in 6 months time - all sorts of things can happen between now and then...

M.S

[Guest Monolithix]

Better? :D

[Guest Mysterious Stranger]

Better? :D

Almost...no money is changing hands though, it's a share-swop /rights issue. Acer are going to issue new shares to the current owners of E-Ten shares - if E-ten shareholders agree - in a ratio of 1:1.0001or similar. They are not buying their own shares back to trade, they are performing a rights issue to cover the transaction making all existing Acer shares worth ever so slightly less.

The implied value of the transaction is based on the share exchange ratio and the current trading value of Acer's shares at the present time. Could be lower in 6 months time...could be higher. No monetery value has actually been placed on the trade by Acer it's just an estimate.

M.S

[Guest Monolithix]

Yep indeed, the news article itself though is more to highlight the fact that Acer are making a big move into the WinMo market and that we should see an even greater range of the well equipped glofiish devices!

[Guest Mysterious Stranger]

Yep indeed, the news article itself though is more to highlight the fact that Acer are making a big move into the WinMo market and that we should see an even greater range of the well equipped glofiish devices!

Hardly a 'move into WinMo' when they've been making Acer PDA's for years and own Benq who are also no strangers to WinMo. More 'an expansion of their Winmo division' methinks...

M.S