In a move aimed at bolstering its business model after struggling in the PC space and attempting to move into the consumer-electronics market, Gateway has announced it will buy low-end PC seller eMachines for 50 million Gateway shares and $30 million in cash. It is a deal altogether worth about $234 million. The deal will make the combined company the third largest PC seller in the United States behind Dell and HP. Gateway hopes to leverage eMachines’ retail channels and low-cost distribution model to extend its own retail reach and pump up its PC business.
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Gateway Buys eMachines for $234 Million
Posted by: Jay Lyman January 30, 2004 11:06 AMIn a move aimed at bolstering its business model after struggling in the PC space and attempting to move into the consumer-electronics market, Gateway has announced it will buy low-end PC seller eMachines for 50 million Gateway shares and $30 million in cash. It is a deal altogether worth about $234 million. The deal will make the combined company the third largest PC seller in the United States behind Dell and HP. Gateway hopes to leverage eMachines’ retail channels and low-cost distribution model to extend its own retail reach and pump up its PC business.