Lenovo to buy IBM's server business for $2.3bn

Deal is China's biggest technology merger and acquisition

Tags: ChinaLenovo GroupMergers and acquisitionsUSA
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Lenovo to buy IBM's server business for $2.3bn The acquisition of the IBM unit would lift Lenovo's market share in the server market to 14% from 2% currently. (Getty Images)
By  Manda Banda Published  January 23, 2014

Lenovo Group Ltd has agreed to buy IBM Corp's server business for $2.3bn as the Chinese PC giant grabs another piece of the computing world in a long-awaited deal, Reuters reported.

The acquisition comes nearly a decade after Beijing-based Lenovo bought IBM's loss-making ThinkPad business for $1.75bn, eventually becoming the world leader in personal computers in 2012.

But with the PC business now under siege in the face of powerful smartphones and super-fast tablets, Lenovo is diversifying its revenue and remodeling itself as a force in mobile devices and data storage servers.

The acquisition of the IBM unit, still subject to approval from the Committee on Foreign Investment in the United States (CFIUS), would lift Lenovo's market share in the server market to 14% from 2% currently, said Peter Hortensius, senior vice-president at Lenovo and president of its Think Business Group.

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