The PC vendor has exercised its right of first refusal to buy all of Packard Bell's shares, ousting Lenovo from the bidding process

Gateway announced on Monday that it has agreed to take over the controlling stake in PC vendor Packard Bell.

Gateway has exercised its right of first refusal to purchase all of the shares of PB Holding Company, the parent company of Packard Bell, from Lap Shun (John) Hui and Clifford Holdings, which is also controlled by Hui.

Both companies control 75 percent of Packard Bell stock. Financial details of the transaction have not yet been disclosed.

Gateway announced in August that it was to be acquired by Acer, which has agreed to fund the purchase of Packard Bell.

Acer rival Lenovo had been interested in acquiring Packard Bell. "From Acer's perspective, they know Lenovo's strong in Asia, and they know Lenovo wants to grow in the US and Europe," said Samir Bhavnani, an analyst with Current Analysis. "This throws up a little bit of a block and gives Acer an advantage in Europe."

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