March 4, 2016
Taiwan-based smartphone manufacturer E-Ten Information Systems are to be acquired later this year by Acer. The agreement includes a share exchange, with total equity value of US$290 million.
Both company’s board of directors have unanimously approved the deal.
In a press release detailing the acquisition, Acer indicated that the move is in line with its expansion strategy. It follows the recent acquisitions of Gateway and Packard Bell, and completes Acers range of mobile solutions. Acer’s president, Gianfranco Lanci, pointed out the the global smartphone market is predicted to grown by over 30% by 2011.
E-Ten has recently released a number of smartphones that use the Windows Mobile platform. Whilst Acer will continue to use the E-Ten Glofiish brand in the short term, an Acer branded smartphone is expected by the end of the year.
Under the agreement, both Acer and E-Ten will increase their outsourcing plans. E-Ten will, however, retain its current small production line for small volumes testing and production.
E-Ten’s co-operation with handset maker Arima Communications for technology development and manufacturing will continue.