Taiwan's leading computer seller Acer is to buy US rival Gateway in a major reshuffle of the world's top computer companies.
Under the deal Acer, which claims the world's third spot in personal computer shipments, said it would pay about $710m for Gateway.
Gateway is the fourth largest PC company in the US and a leading retail PC provider.
Acer said the merger would create a multi-branded PC company with more than $15 billion in revenues and shipments in excess of 20 million units per year.