Tuesday - Sep 25, 2018

Lenovo Announces The Complete Acquisition Of IBM x86 Servers


Lenovo Announces The Complete Acquisition Of IBM x86 Servers

After nine months Lenovo announced that it has completed the acquisition of IBM x86 servers, and ultimately the total amount of the transaction is approximately $ 2.1 billion. In January 23, 2014, Lenovo announced $ 2.3 billion acquisition of IBM x86 server hardware and related maintenance services, the final amount of the transaction is approximately $ 2.1 billion, including about $ 1.8 billion will be completed the same day with a cash balance of approximately $ 280 million in the transaction places Lenovo stock payment (based on the closing price of 26 September 2014 Lenovo shares calculation). With the completion of the acquisition of IBM x86 server business transaction, Lenovo will be added in a world-class business. In July, the Chinese Anti-Monopoly Bureau of the Ministry of Commerce approved the transaction; in August, the U.S. Committee on Foreign Investment (CFIUS) agreed to sell IBM x86 server division to Lenovo.

Part of the Lenovo purchase includes: related hardware products (including System x, Blade Center, Blade, Flex System, Pure Flex product, Blade Network Technology systems network products), a number of business-related intellectual property rights, contracts with a number of business-related services, business inventories (including system x, Blade Center, Blade, Flex System and system x products Pure Flex Blade Network Technology products and a number of other systems, such as networking products).

Lenovo said the transfer will be Wednesday as part of the initial delivery of countries and regions (including most of the major markets including) performed. Transfer of most other countries will be completed by the end of this year, a small amount of the remaining countries will be completed in early 2015. Global team IBM x86 server business will be incorporated into the Lenovo enterprise business group, and led IBM’s x86 server business in Adalio Sanchez will join the association as Senior Vice President of Enterprise Systems business, continue to lead the business, reporting directly to Gerry Smith.

Lenovo side said that after the completion of the acquisition of IBM x86 servers, Lenovo servers domestic market share will reach 22%, ranked first; in the global market share will reach 14%, ranking third.

“With the completion of the acquisition of IBM x86 server business transaction, Lenovo will be added in a world-class business and further strengthen our capabilities in enterprise-class equipment and services, and then become the third largest vendor in the worldwide server market.” Lenovo Group Yang Yuanqing, chairman and CEO, said, “Now, we will focus on the smooth integration of the business, to provide users with stable and smooth transition. With Lenovo’s globalization, efficiency and operational excellence, combined with IBM’s legendary quality, innovation and service, we are confident that take advantage of these competitive advantages to promote profitable growth and become a global leader in enterprise-class areas. “

“All along, the association is a responsible global enterprises, as well as secure and reliable technology providers, this acquisition clearly demonstrates our many years to win the trust and affirmation.” Executive vice president of Lenovo Group, enterprise-class business group and Gerry Smith, president of the Americas region, “said Lenovo’s server business has developed ambitious plans for the future, we will actively moving and expand its business in all market segments, give full play to the advantages of association in manufacturing scale and operational excellence achieved as in PC like the outstanding achievements in the field. “