Under a definitive agreement between both firms, Acer will offer a share exchange ratio of 1:1.07 for all the outstanding shares of E-TEN, representing total equity value of approximately NT$9 billion. The new issued shares will represent approximately 6 percent of total Acer outstanding shares.

The acquisition has been approved by the boards of directors of both E-TEN and Acer and is subject to standard closing conditions, Acer said yesterday.

“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 percent 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.”

Acccording to Acer, the acquisition of E-TEN will allow it to play a key role in the development of the fast-evolving market of smart handheld devices and will help bring Acer’s mobile solutions to an even wider audience.

“We expect the acquisition to close during Q3 2008,” Acer said. “We have always believed in the power of mobility and has developed a world-class reputation for cutting-edge mobile solutions. Mobility is in constant evolution. To stay ahead of the changes, the technology and applications must adapt to the true needs of business and consumer users alike. “

The acquisition of E-TEN is in line with Acer’s expansion strategy and follows the recent acquisition of Gateway and Packard Bell to complete its range of mobile solutions, the company said.

“With a strong reputation for R&D and the customer-oriented culture of both companies, combined with Acer’s considerable and now global marketing power, E-TEN will help Acer explore and develop entirely new solutions for mobile communication,” Acer said.

E-TEN has released a number of pocket PC phones featuring combinations of GPRS, Wi-Fi, Bluetooth, GPS, and 3.5G GSM technologies, each enhanced by in-house developed software applications.

In 2006, E-TEN adopted a new brand name, Glofiish, as part of its strategy to make deeper inroads into the consumer electronics sector.

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