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The deal, which Acer president Gianfranco Lanci said would see the integrated company ready to go by January 1st 2008, will keep all the brands separate. Acer's desktop PC sales are well below the figures the firm would like in Europe, and Lanci said that the acquisition of Packard Bell is an ideal fit since it is already an established and successful brand there.

He added that, "certainly no more than three of the four brands will be used in each region," and that, "we need the three brands so we don't confuse our customers". It could also mean the return of Gateway PCs to the UK. Gateway has been all but absent since the US firm's decision to pull out of the UK market in 2001.

The combined company will solidify Acer's position as the third-largest PC company behind HP and Dell. This pushes it well ahead of Lenovo, which was in talks to buy Packard Bell in early August.