Acer agreed to buy Gateway for $710 million. The combined company will be the 3rd largest PC maker in the world.

Under the terms of the agreement, Acer will commence a cash tender offer to purchase all the outstanding shares of Gateway for $1.90 per share, which represents total equity value consideration of approximately $710 million.
"This strategic transaction is an important milestone in Acer's long history" said J.T. Wang, Chairman of Acer. "The acquisition of Gateway and its strong brand immediately completes Acer's global footprint, by strengthening our US presence. This will be an excellent addition to Acer's already strong positions in Europe and Asia. Upon acquiring Gateway, we will further solidify our position as number three PC vendor globally."

The PC business is a tough market. Whether or not the purchase makes Acer more competitive to Dell remains to be seen.
Via this Acer press-release.