Packard Bell Buys Zenith Data

In the personal computer industry’s biggest merger, Packard Bell Electronics Inc. acquired Zenith Data Systems Inc. Wednesday as part of a complex $650 million deal aimed at boosting Packard Bell’s financial strength.

The merger gives Packard Bell a foothold in corporate and government markets. Those markets have fatter profit margins than the consumer market, where Packard Bell is the industry’s top seller.

“It is a way for Packard Bell to move in to some other areas that are not quite as margin-skinny,” said Dave Tremblay, analyst at Computer Intelligence Infocorp.