Taiwan’s Acer Inc will buy Gateway Inc for $710 million to double its U.S. presence and unseat China’s Lenovo as the world’s No. 3 PC maker, while dealing a blow to its efforts to grow in Europe.

Gateway said on Monday it would exercise its right to take a first attempt at buying the parent of Paris-based PC maker Packard Bell BV. The move is a setback for Lenovo, which had also been courting Packard Bell to expand its relatively weak presence in the European consumer market.

Acer Inc said it entered a definitive agreement to pay $1.90 per Gateway share, representing a premium of 57 percent over its Friday close on the New York Stock Exchange. Gateway stock rose 59 cents, or 49 percent, to $1.80 on Monday.