In a move that comes as no surprise to the industry, computer maker Gateway announced today that it plans to acquire all the shares of Packard Bell controlled by former eMachines founder Lap Shun (John) Hui, although the financial terms of the transaction weren’t disclosed. Hui controls a 75 percent interest in PB Holding, which is the parent company of Packard Bell B.V., a PC maker whose name has all but vanished from the North American market but remains a force in Europe.
The acquisition completes the end-run Taiwanese computer maker Acer managed to pull on its rival Lenovo, who had reported been eyeing acquiring Packard Bell as a means to boost its European business. In August, Acer announced a deal to take over Gateway for $710 million. The complicated history of Gateway, eMachines, and Packard Bell had given Gateway the right of first refusal on any acquisition of Packard Bell. In buying Gateway, Acer not only got a substantial foothold in the North American computer market, but also acquired veto power over Lenovo’s possible acquisition of Packard Bell. Now, Acer/Gateway has completed the move, taking Packard Bell off the table and leaving Lenovo twisting in the wind, looking for new ways to expand its market base.
Gateway says its acquisition of Packard Bell is expected to close in late 2007 or early 2008.
