IRVINE, CA – Acer Inc. today announced the purchase of Gateway Inc. for $710 million. The deal has the support of both companies’ boards and is expected to close by December.

The combined company reportedly would generate $15 billion in annual revenue and account for more than 20 million PC shipments each year.

The acquisition would give Acer a stronger presence in North America, particularly in the lower end of the market, the company said.

Both Gateway and Acer sell desktops and laptops and rely extensively on resellers and Internet sales. Upon acquiring No. 4 Gateway, Acer will become the No. 3 PC vendor globally, the company reported.

The two companies expect to generate savings of up to $150 million from eliminating duplicate operations and from wielding greater purchasing power.