Menu
Lenovo, Acer vie for Packard Bell

Lenovo, Acer vie for Packard Bell

Lenovo announced plans to buy electronics maker Packard Bell, cutting out Acer from a similar deal.

Lenovo Group on Tuesday announced plans to acquire European electronics maker Packard Bell. If it goes through, the deal would be a disappointment for Lenovo rival, Acer, which reportedly was also trying to buy Packard Bell.

Lenovo, the world's third largest PC vendor, said in a statement that it has already entered talks with companies and government organisations in preparation for a purchase of Packard Bell.

Packard Bell did not release a statement, but the company's owner confirmed he was negotiating the deal.

"Lenovo and I have indeed signed a memorandum of understanding granting them exclusivity to purchase Packard Bell once all regulatories and contract obligations are fulfilled," John Hui said in an email response.

"The (intended) acquisition signifies Lenovo's determination, commitment and longterm planning in entering the PC consumer market after it has successful completed its merger with IBM PC," Hui said. "Packard Bell will provide Lenovo a spearhead into Europe and a jump start into the PC consumer market."

The Lenovo deal puts the company at odds with rival Acer, the fourth biggest PC vendor. Chinese language newspapers in Taiwan have reported that Acer has been in talks to buy Packard Bell for months, and an Acer executive that declined to be named confirmed the rumours.

However, in an email exchange Monday, Hui denied he had had any sort of deal with Acer. "I have not entered into any agreements with Acer concerning Packard Bell," he said in the email.

Lenovo and Acer are fighting a tough market share battle in the PC industry, with Acer taking third place overall in the first quarter, but Lenovo regaining the title in the second quarter. The Chinese vendor accounted for 8.3 per cent of global PC shipments in the second quarter, according to market researcher, IDC, while Acer took fourth place with a 7.2 per cent share.

Purchasing Packard Bell could tip the scales in favour of Lenovo. The tie-up would likely help Lenovo more than it would have boosted Acer. Earlier this year, Acer announced plans to acquire a rival in a key growth area, but most analysts assumed a deal would be aimed at China, where Acer lags. The Taiwanese company has a strong presence in Europe, ranking among the top three players in laptop and desktop PCs. Lenovo is further behind, but holds more market share than Acer in the US and China.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Featured

Slideshows

Meet the leading female front runners of the Kiwi channel

Meet the leading female front runners of the Kiwi channel

Reseller News honoured the leading female front runners of the New Zealand channel at the 2018 Women in ICT Awards (WIICTA) in Auckland. The awards honoured standout individuals across seven categories, spanning Entrepreneur; Innovation; Rising Star; Shining Star; Community; Technical and Achievement.

Meet the leading female front runners of the Kiwi channel
Meet the top performing customer-centric Microsoft channel partners

Meet the top performing customer-centric Microsoft channel partners

Microsoft honoured leading partners across the channel following a year of customer innovation and market growth in New Zealand. The 2018 Microsoft Partner Awards recognised excellence within the context of the end-user, spanning a host of emerging and established providers.

Meet the top performing customer-centric Microsoft channel partners
Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Show Comments