Lenovo has announced that it is purchasing IBM’s x86 server business in a deal which is worth $2.3 billion, this is the second purchase from IBM, back in 2005 Lenovo bought IBM’s ThinkPad laptop business.
The deal will see Lenovo pay IBM $2 billion in cash, the rest of the purchase price will be made up of Lenovo stock, and around 7,500 employees from IBM are expected to join Lenovo.
“This acquisition demonstrates our willingness to invest in businesses that can help fuel profitable growth and extend our PC Plus strategy,” said Yang Yuanqing, chairman and CEO, Lenovo. “With the right strategy, great execution, continued innovation and a clear commitment to the x86 industry, we are confident that we can grow this business successfully for the long-term, just as we have done with our worldwide PC business.”
“This divestiture allows IBM to focus on system and software innovations that bring new kinds of value to strategic areas of our business, such as cognitive computing, Big Data and cloud,” said Steve Mills, Senior Vice President and Group Executive, IBM Software and Systems. “IBM has a proven record of innovation and transformation, which has enabled us to create solutions that are highly valued by our clients.”
You can find out more details about the acquisition of IBM’s X86 server business from Lenovo at the link below.
Source Lenovo