The complex negotiations among Acer, Gateway, Packard Bell, and Lenovo formally ended Tuesday with Acer acquiring Gateway -- and Lenovo being left out in the cold.

The deal immediately catapulted Acer ahead of Lenovo as the third largest PC company in the world. HP and Dell occupy the number one and two positions, respectively, according to recent rankings released by the Gartner Group and IDC.

The ace-in-the-hole in the deal was Dutch manufacturer Packard Bell, which has been a major player in the Western European PC market. Gateway's rights to acquire Packard Bell are transferred to Acer in the deal. The Gateway brand also includes its eMachines unit.

"The acquisition of Gateway and its strong brand immediately completes Acer's global footprint, by strengthening our U.S. presence," said J. T. Wang, Acer chairman, in a statement.

Gianfranco Lanci, Acer president, indicated that the combination would result in savings; the firm has said that pre-tax synergies should result in savings of at least $150 million. Lanci added that Acer plans to differentiate its brands "to address different consumer segments."