Acer's efforts to overtake Lenovo received a huge boost today after the Taiwanese computer maker announced plans to acquire all the outstanding shares of US based Gateway for $710 million. The Gateway acquisition should vault Acer as the world's third-largest PC vendor, adding together 18.6 million PCs shipped during 2006, compared to 16.6 million PCs shipped by Lenovo.

"The acquisition of Gateway and its strong brand immediately completes Acer's global footprint, by strengthening our US presence. This will be an excellent addition to Acer's already strong positions in Europe and Asia. Upon acquiring Gateway, we will further solidify our position as number three PC vendor globally," said Acer chairman J.T. Wang.
The company will reportedly start using multiple brands in all areas of the world, including the Gateway brand, as well as eMachines - which Gateway acquired 2004 - and possibly Packard Bell. The deal has already been approved by the boards of directors of both Gateway and Acer and should be completed by the end of this year, subject to regulatory government approval in Taiwan and the US.