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Lenovo bought IBM's Server business

by on27 January 2014 1288 times

From Lenovo Group Ltd. announced that they have reached an agreement with IBM for the sale of their departments for production servers. After they in the 2012 from the same company purchased unsuccessful ThinkPad Department  for $1.75 billion, and made him the world's leading manufacturers they have now decided to make a similar move with the server department of IBM.

 

Total cost of the acquisition is $ 2.3 billion, of which 2.07 billion in cash and the rest in stocks. It will be largest Chinese technology acquisition ever made. If the acquisition is officially confirmed by the American Commission for foreign investment, the share of Lenovo at the global level as far as the server market will grow from 2% to as much as 14%.

The company announced product improvements, better cost management and better market coverage, which should take the department and overall operations related to servers to a higher level. It will be a great challenge for Lenovo since IBM in this sector recorded a decline in sales for seven consecutive quarters.

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Last modified on 27 January 2014
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