PC vendor Acer has announced the acquisition of cloud computing company iGware as it plans to tap the emerging cloud computing industry for businesses.
According to tech website Cnet, the Taiwan-based computer hardware manufacturer announced the acquisition of iGware for $320 million on Thursday. The acquisition is an attempt to move beyond hardware manufacturing and establish a share in the rising technology sector of cloud computing.
Acer will pay $150 million in cash and the remaining amount in the form of stocks to buy the Mountain View, California-based company. According to the details given, Acer could pay $75 million more if certain performance criteria are met in the future.
"This (the acquisition) is the right direction for Acer. Companies can no longer rely only on hardware; they have to bring new values to customers through providing applications and software services, and by that to increase their margin," an analyst at research firm Gartner commented upon the deal.
Henry Wan, the spokesman for Acer has not provided extensive details of the acquisition, such as the number of employees at iGware, their future at Acer or the revenue of the company. However, Acer has made clear that it plans to start its own cloud computing business as soon as next year with the help of iGware.