Acer has entered into a definitive agreement to acquire E-TEN Information Systems Co., Ltd., the manufacturer of smart handheld devices.

Under the terms of the agreement, Acer Inc. will offer a share exchange with ratio of 1: 1.07 for all the outstanding shares of E-TEN, which represents total equity value consideration of approximately NT$9 billion. The new issued shares will represent approximately 6% of total Acer outstanding shares.

The acquisition has been unanimously approved by the boards of directors of both E-TEN and Acer and is subject to standard closing conditions, including obtaining approval from Shareholders Meetings and the Governmental Regulators.  

Acer expect the acquisition to close during Q3 2008.

"This strategic transaction is yet another important milestone in Acer's long history of innovation," said J.T. Wang, Chairman and CEO of Acer Inc. "The acquisition of E-TEN increases Acer's global footprint by giving us a strong and highly credible presence in the mobility segment." 

"The worldwide smart phone market is estimated to grow by more than 30% by 2011," added Gianfranco Lanci, President of Acer Inc. "Acer will enhance the competitiveness in the ultra mobile segment, by combining PC and communication technologies".