Gateway completes eMachines acquisition

Gateway has completed its buyout of PC supplier eMachines, and has appointed eMachines chief executive officer Wayne Inouye its...

Gateway has completed its buyout of PC supplier eMachines, and has appointed eMachines chief executive officer Wayne Inouye its new CEO.

Gateway's purchase of eMachines was valued at more than $234m when the deal was announced at the end of January.

Gateway said that the buyout would increase its scale, making it the third-largest player in the US PC market and eighth-largest PC supplier in the world.

Inouye succeeds Ted Waitt as Gateway's CEO, though Waitt remains chairman of the company and its largest stockholder.

The two organisations will now work on expanding their joint product lines to tap into new markets. Gateway predicted it would return to profitability in 2005, thanks to the sales growth and cost savings it expects to receive under the buyout.

Gateway's purchase of eMachines reflects a renewed focus on the company's PC business, after making an aggressive push into the consumer electronics market.

In other company changes, Gateway said it was looking for a new independent accounting firm after receiving notification from PricewaterhouseCoopers that it did not wish to stand for reappointment.

Gateway stressed, however, that there was no disagreement with the accounting firm "on any matter of accounting principles, financial statement disclosure or auditing scope or procedure".
 
The PC supplier has already faced investigation by the US Securities and Exchange Commission relating to its 2000 financial results.

Gateway is in advanced discussions to appoint a new accounting firm, which will have to be approved at the company's stockholders' meeting in May.

Scarlet Pruitt writes for IDG News Service

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