Lenovo, the third largest PC vendor in the world, may just get a little larger if a possible acquisition of European electronics maker, Packard Bell pans out.
The company announced plans to acquire Packard Bell. Currently, the company is talking and working with an independent third party in order to help prepare for the possible purchase.
It’s being reported that Acer Inc., the world’s fourth largest PC vendor, is also vying for the company’s acquisition.
Packard Bell with its partnership with NEC was a force in the PC market during the nineties. The company also made a huge splash in 1997 with its NEC Now direct sales strategy, virtually turning is back on the channel. The strategy along with the organization dropped out of sight have since concentrated only in the European market place.
Michelle Warren, a senior research analyst with London, Ont.-based Info-Tech Research Group, thinks it’s a wise move for Lenovo to be thinking of acquiring Packard Bell.
“Packard Bell is strong in Europe and this is what they’ll bring to Lenovo,” Warren said. “Lenovo is already strong in North America and China. If this [acquisition] goes through, this will open up the European market [for them].”
Warren added that is potential move could help the company better compete with Acer in the consumer market.
“It’s a good move for Lenovo in the consumer market in Europe. Acer is not strong in China and Lenovo is, that’s where Lenovo has a foothold. Lenovo would have the existing Packard Bell clientele and this would help them grow their business exponentially.”
In an e-mail statement provided by John Hui, principal owner of Packard Bell, he said if Lenovo acquires the company, this would boost their PC consumer market share within Europe.
“The [intended] acquisition signifies Lenovo’s determination, commitment and long term planning in entering the PC consumer market after it has successfully completed its merger with IBM PC,” Hui said.
Warren speculates that if the acquisition materializes between Lenovo and Packard Bell, the North American market space may soon see Packard Bell products available within the next couple of years.
“If they do this, I expect we’ll start to see the Packard Bell line coming to North America. This would open up a new market here.”
Furthermore, if Lenovo ends up acquiring Packard Bell, Warren forecasts Lenovo will rise close to the ranks of HP and Dell.
“On a worldwide level, [this acquisition] will put Lenovo close to HP and Dell and this will give the two companies a run for their money. If this goes through, this will position Lenovo up and it will be close to number two [in the market place].”
On the Lenovo side, while CDN attempted to contact a representative, no one was available for comment on their end.