Gateway to buy eMachines

FRAMINGHAM (02/02/2004) - Gateway Inc. plans to acquire eMachines Inc. for about US$200 million to increase its shrinking PC revenue while it pursues the consumer electronics market, the companies announced last week. The deal will provide Gateway with the revenue generated by eMachines' strength among consumers in retail channels, the companies said. EMachines sells low-cost PCs that have made inroads with U.S. consumers, who purchased enough PCs from the company to lift it into fourth place ahead of Gateway in the fourth quarter, according to IDC. Gateway Chairman and CEO Ted Waitt will give up the CEO title to eMachines CEO Wayne Inouye, but will remain as chairman and will have an active role in Gateway's future, the company said.

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