Gateway plans to acquire rival eMachines in a bid to regain its footing in the PC game and broaden the distribution of its Gateway-branded consumer electronics devices at retail.

The Poway, Calif.-based company plans to purchase privately held eMachines for $30 million in cash and 50 million shares of stock. Based on Gateway's closing price of $4.09 per share Thursday, the total value of the deal would be approximately $234.5 million.

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