TWO COMPUTER FIRMS FORM GIANT OPERATION
By Adnews Staff
U.S. computer maker Packard Bell is getting a production line boost in a deal announced this week with Japan's NEC Corporation. Packard Bell is combining its global personal computer business with all the PC operations NEC has outside of Japan and China, to form a company called Packard Bell NEC. Packard Bell will obtain NEC assets valued at around $300 million(US) while NEC's share in the American company will grow to between 35% and 40%. Packard Bell, which sells low-cost computers to the home market, is burdened with a reputation for poor quality and poor service. The Wall Street Journal reports that NEC has said it will send engineers and other staff to Packard Bell to help improve quality. The new combined operation, slated to open July 1, will market products under the Packard Bell, NEC and Zenith Data Systems names. Zenith, a maker of notebook machines, was merged with Packard bell earlier this year to form the world's largest PC maker. NEC brings both desktop computers and servers to the new combined company's product line. Servers are powerful machines used by companies to run networks, and by engineers, scientists and academics to crunch numbers. NEC creates Canadian advertising in-house with the help of The Cohen Group of Toronto, which also does media buying. Some creative comes from Houston Effler of Boston. Continental PIR of Toronto does public relations. Avant-Garde Marketing & Production of Unionville, Ont. does Canadian advertising for Zenith.