In an attempt to access a portion of the ever-growing cloud, Acer, the Taiwanese PC maker, will buy the cloud computing firm, iGware, for $320 million in cash and stock.
Acer has experienced a rough year so far, including the resignation of chief executive, Gianfranco Lanci, who had disagreements with the board over the company’s future, as well as acknowledgments of recently discovered inventory irregularities, which will cost the PC maker around $150 million. This deal could allow Acer to tap deeper into the thriving tablet market where Acer has already released tablets in its Iconia Tab line.
The California-based iGware will receive $150 million in cash, along with $170 in stock. To keep performance rates high and encourage existing staff to stay with the cloud computing company, Acer will set aside an additional $75 million for bonuses. When the deal is complete iGware will be renamed Acer Cloud Technology Co.
iGware currently supports more than 100 million consumer devices, including several Nintendo Products, a relationship that, if maintained, will provide Acer with $20-$30 million in annual service fees.
The Taiwanese company hopes to begin launching cloud-based products by 2012, according to Henry Wang, the deputy spokesman of Acer, as reported in the Wall Street Journal.
“Acer Cloud will be the firm’s key differentiator for the next 10 years,” he said.
Source: The Wall Street Journal