Packard Bell, best known for its range of low cost PCs sold through the Dixons Stores Group has been sold by its majority shareholder NEC to Californian entrepreneur John Hui.

The deal provides an exit strategy for NEC who earlier this year declared its intention to pull out of the home PC market in favour of business machines. At the same time is provides Hui with another stepping stone in building a low cost PC giant. Hui once owned eMachines - another prominent brand sold through the Dixon's outlets of Curry's Digital and PC World. He later merged the company with US direct reseller Gateway. However, Hui remains one of the biggest shareholders of Gateway. In June, the board rejected his $450 million bid for Gateway although he is still said to harbour ambitions to take control of all three brands.

Packard Bell, which is now headquartered in the Netherlands, is one of the oldest PC manufacturers in the business with a history that goes back to the 1930s. Although it pulled out of retailing in its native US in the late 1990s it still has a large following in Europe and is said to be the continent's third biggest retailer.

Financial details of the deal have not been disclosed.