Gateway Inc. will acquire eMachines, Inc. for $30 million in cash and 50 million shares of Gateway stock. The stock reportedly is worth $236 million.
The combined company plans to leverage eMachines’ established retail relationships to expand distribution of Gateway’s line of consumer electronics products beyond its existing direct marketing channels. Under the agreement, Wayne Inouye, eMachines’ CEO, will assume the same post at Gateway and will be named to Gateway’s board of directors.
Roderick Sherwood III will remain Poway, CA-based Gateway’s chief financial officer. Gateway founder Ted Waitt will remain chairman of the board.
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