There were few tears shed in the deal this week that saw Gateway swallowed up by Taiwanese PC maker, Acer, for $710 million (€521 million).

The real tears were shed eight years ago, when Gateway's share price first started to go into freefall; and two years after that when the company announced the loss of 9,000 jobs - 1,000 of those in Ireland - as it wound down its European operations amid plummeting sales.

Gateway burst on to the scene in the late 1980s after founder Ted Waitt dropped out of the University of Iowa, where he was studying finance and marketing, to take a job in a computer shop.

In 1985, he established Gateway as a direct sales operation. By 1993, Wait had tapped Ireland as a European HQ to supply his growing markets.

The numbers employed at the Clonshaugh operation mushroomed from 120 at the outset to 1,250 by the turn of the decade. Such was Gateway's success that former US president Bill Clinton visited the plant during his trip to Ireland in 1998.

Clonshaugh epitomised the success of the South Dakota company. However, the bursting of the dotcom bubble hit the company hard.

The first redundancies in Dublin happened in January 2001. Within eight months, the plant had closed following a 46 per cent second-quarter slump in sales.

In the same way that Gateway's arrival in Dublin signalled its ambition, its retreat marked the beginning of the end.

The big development to emerge from this final chapter in Gateway's life as an American company was the increasingly prominent role of Asian companies in the industry. Ironically, another dimension of the arrangement will allow the new firm to increase its foothold in the European market in a deal that could see it add Packard Bell to its stable.

The deal may have been overpriced, judging by the low share price in the days that followed. However, industry experts said the move would be good for both companies. Acer gains the brand recognition of what remains the fourth-largest computer manufacturer globally, along with the benefits that come with increased scale in an industry where margins are razor thin.

"Gateway was not big enough to enjoy the economies of scale of its competitors, but it was big enough to have the costs of infrastructure," Gartner analyst Charles Smulders said.

"This is strategically a very savvy move for Acer," said JP Gownder, an analyst with Forrester Research. In addition to scale, he added, Acer will also gain the marketing prowess of Gateway, including its valuable shelf space.

If the deal is approved by US regulators, as is likely, Gateway's trademark black and white brand is likely to survive. But the new owner's Tapei base is a far cry from the Idaho barn where Gateway got its famous cow motif when it was started in 1985.

In fact, the deal is the latest salvo in a PC war between China and Taiwan, as Acer battles its Asian rival Lenovo for a top place among the market leaders.

The acquisition will move Acer instantly to number three in global market share, stealing the mantle from the Chinese PC maker that acquired IBM's PC business in early 2005. Right now Dell leads the pack with 28.3 per cent, followed by HP at a close 23.4, according to research firm IDC. The newly combined company will have a competitive, but distant 10.8 per cent. But analysts say these market positions are fleeting.

"The number one position in the PC market is rented space. It changes every five years," said Mr Smulders. "It's fair to say we should continue to expect change going forward," he added.

This week's deal echoed one IBM made with Lenovo. That sale did not bring immediate gains for the Chinese company, but analysts say it is benefiting now from the American presence. Acer may need the same patience as it encounters some similar challenges in merging the two companies' operations. But one difference with this deal will be the lack of political resistance.

"The level of tension with China is very high. But Taiwan is not of particular concern, and this advantages Acer," Mr Gownder said.

In fact, most American PC-sellers manufacture computer parts in China and Taiwan as it is, so it is not possible for all that much change in this aspect of the operation, according to analysts.