Acer to pick up E-Ten

TAIWANESE PC firm Acer has announced plans to acquire handheld device maker E-Ten through a share swap valued at around 9 billion Taiwan dollars or $289 million.

E-Ten shareholders will get one Acer share for each 1.07 E-Ten share, giving them a six per cent interest in the combined company, Acer said in a statement Monday. The deal is expected to be finalised in September, pending regulatory and shareholders' approvals.

Acer president Gianfranco Lanci reportedly said that the acquisition of E-Ten will bolster the company's strength in the ultramobile PC market, which is expected to see 30 per cent annual growth through 2011.

E-Ten's unaudited 2007 results showed a 56 per cent gain in revenue along with a 60 per cent increase in net profit, yielding earnings per share of $4.02.

Acer, the world's third largest PC brand, reported unaudited 2007 sales of over $461 billion and net profit of $12.89 billion for earnings per share of about $5.40. µ