Acer says in talks to work with Nintendo after iGware deal

TAIPEI, July 21 Thu Jul 21, 2011 4:09am EDT

TAIPEI, July 21 (Reuters) - Acer Inc , the world's No.2 PC maker, said on Thursday it will talk to Japanese game firm Nintendo over potential cooperation after acquiring U.S. based cloud computing firm iGware Inc.

Acer Chairman J.T. Wang told reporters that Nintendo, a major client of iGware, is supportive of the deal and will pay Acer a $20-30 million service fee every year after the acquisition.

The Taiwanese company said earlier on Thursday it would buy iGware for $320 million, looking to move into the potentially lucrative cloud market and add value to its main hardware business.

Wang added that the company will report a loss in the second quarter before returning to profit in the third. (Reporting by Argin Chang; Editing by Jonathan Standing)

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