PC manufacturer Acer has announced plans to acquire Gateway, the fourth largest PC manufacturer in the United States, for US$710 million.

Acer will pay US$1.9 per share to acquire Gateway. After the transaction, which is expected to be completed before December this year, the company's annual revenue will reach US$15 billion with a PC output volume of more than 20 million, making it the third largest computer maker in the world. At present, the parties are waiting for approval from Taiwan and the U.S. authorities.

A few days ago, Gateway announced plans to partner with Digital China to sell its computer products in the China market.