Gateway’s stock jumped 50% today on news that Taiwan’s Acer will buy the former PC giant for $1.90 a share, MarketWatch reports. The acquisition leapfrogs Acer over Lenovo to the No. 3 spot in world computer sales. Meanwhile, Gateway said it will execute its right of first refusal to buy Packard Bell's parent company, foiling Lenovo's bid to acquire PB.
Though still a top seller in the US, Gateway has slid dramatically from its pre-tech-crash heyday, when it was worth an estimated $27 billion. Its second quarter US sales declined 7% from last year, compared to a 164% rise for Acer. Acer’s CEO says the deal completes the company's global footprint by increasing its US market share.