Comments
Chinese-owned computer maker Lenovo Group Ltd. on Thursday said it had agreed to pay $2.3 billion to buy the server hardware and maintenance division of US technology services giant IBM.
The acquisition “will provide the company with end-to-end capabilities to serve enterprise customers and explore new growth segments in the enterprise hardware market,” Lenovo said in a statement to the Hong Kong Stock Exchange.
The deal for the x86 servers, designed for corporate data systems, will support some 7,500 IBM jobs globally, including plants in the United States, China and Taiwan, the company said.
“This acquisition demonstrates our willingness to invest in businesses that can help fuel profitable growth,” Yang Yuanqing, Lenovo’s Chairman, said in a separate statement.
The deal remains subject to regulatory approval in China and the US.
Lenovo bought IBM’s personal computer business for $1.25 billion in 2005.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.