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Acer to buy TI notebook arm

Acer Group will buy the mobile computing business of Texas Instruments, making it one of the world's largest PC manufacturers.

    Acer Group will buy the mobile computing business of Texas Instruments (TXN), the companies announced today.

    Acer will acquire TI's Extensa and TravelMate line of notebooks, as well as other related assets. Also, the companies said a "substantial number" of TI's employees worldwide in the marketing, sales, and customer support portions of its mobile computing business will be transferred to Acer as a part of the deal.

    The two companies did not disclose the financial terms of the deal except to say that it was a cash transaction and that no transfer of stock was involved. As a part of the agreement, TI will take charges related to its notebook business up to the first quarter of 1997 to cover liabilities, but Acer will have fiscal responsibility for any profits or losses beyond that date.

    With the acquisition, Acer will become the fourth-largest vendor of notebooks in the United States and sixth-largest in the world, according to a recent report by IDC Research.