Acer today announced it has entered into a definitive agreement to acquire Taiwan smartphone maker E-Ten Information Systems. Under the terms of the agreement, Acer will offer a share exchange, with the total equity value consideration being approximately NT$9 billion (US$290 million). The new issued shares will represent approximately 6% of total.
The acquisition has been unanimously approved by the boards of directors of both E-Ten and Acer and is expected to go into effect in the third quarter of this year.
Acer indicated in a press release that the acquisition of E-Ten is in line with its expansion strategy and follows the recent acquisition of Gateway and Packard Bell, and completes Acer's range of mobile solutions. Gianfranco Lanci, president of Acer, noted that the worldwide smartphone market is estimated to grow by more than 30% by 2011.
E-Ten has released a number of smartphones based on the Microsoft Windows Mobile platform and Acer will release a branded smartphone by the end of the year. However, Acer will continue using the E-Ten Glofiish brand in the short-term.
Although Acer and E-Ten agreed that they will increase their outsourcing plans, E-Ten will retain its current small production lines for small volume and testing production.
E-Ten also currently shares a technology platform with handset maker Arima Communications, and E-Ten president Simon Hwang indicated that the cooperation with Arima for technology and manufacturing will continue.