Lenovo buys IBM server business by 1,690 million euros
The Chinese PC maker Lenovo has reached an agreement to purchase for $2,300 million (1,690 million euros) in cash and shares the business of low-end servers X86 of the US-based International Business Machine (IBM), reported the Asian company.
Specifically, the company will pay IBM $2,000 million (1,470 million euros) in cash, while $300 million (220 million euros) remaining will be paid in shares of Chinese multinational company.
The agreement, which includes those less powerful servers from IBM, occurs nearly a decade after that Lenovo will buy in 2005, the PC business in the US, after which both companies maintain a close collaboration. As part of the transaction, which must still get permission from the authorities, Lenovo will be relocating in the Chinese company to around 7,500 IBM employees around the world.
“This acquisition demonstrates our willingness to invest in businesses that can contribute to profitable growth and our strategy to extend beyond the PC”, said Yang Yuanqing, chairman and CEO of Lenovo.