Acer's buyout of the US-based company will strengthen the PC maker's hand in offering cloud computing services to integrate its products. (File Photo/Wang Yuan-mao)
Taiwan-based PC vendor Acer announced its acquisition of US-based iGware as part of its efforts to enhance its cloud computing system.
The US$320 million deal, along with a performance-based earn-out of US$75 million, will help boost the Acer Cloud system, Acer chairman JT Wang said. Shareholders in iGware will hold a 4.5% stake in Acer, according to the report.
The Acer Cloud system is aimed at integrating Acer's various products, including PCs, tablet computers and smart handheld devices. The cloud system services will be launched sometime next year with new teams in Taiwan and China, including the existing US team, he said.
iGware is located in Silicon Valley, California, without attracting much attention from the computer industry, Acer said. However, the company has offered cloud services for Nintendo's Wii and 3DS with their more than 100 million players.
Following the acquisition, iGware will change its name to Acer Cloud Technology Co, headed by Wei Yen, founder of iGware and a former board member of Acer.
Yen is a well-known consultant in Silicon Valley and also has a good relationship with Acer founder Stan Shih going back more than 20 years, Wang said.
Compared with Taiwan's Quanta Computer, which is focusing on ODM and OEM, Acer is adding value to its products by striving to build up its own brands and now integrating the cloud system service, noted Masterlink Securities Corporation in relation to the deal.
JT Wang 王振堂
Wei Yen 顏緯群