Taiwan-based computer vendor Acer has agreed to acquire PC maker Gateway ( GTW) for $710 million.

The deal values each share of Gateway at $1.90. Gateway closed Friday at $1.21, but was jumping 62 cents, or 51%, to $1.83 in premarket action Monday. The stock has traded between $1.13 and $2.44 in the past year.

Acer said the acquisition will create a company with more than $15 billion in annual revenue and shipments in excess of 20 million PC units a year.

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