Lenovo buys controlling stake in Fujitsu’s PC business
HP overtook Lenovo to become the biggest PC maker in the world earlier this year
Lenovo Group has acquired a 51% controlling stake in Fujitsu's personal computer business, reportedly for $157m in cash.
Lenovo also said it will additionally pay between $22m and $112m depending on performance until 2020.
Lenovo and Fujitsu will form a joint venture, along with the Development Bank of Japan (DBJ) who will own 5%, where they will focus on the research, development, design, manufacturing and sales of client computing devices for the global PC market," the firms said.
According to Bloomberg, Lenovo's chief executive Yang Yuanqing plans to reduce costs from the mobile business as reports suggest that despite acquiring Motorola from Google in 2014, the division has not grown.
Over the last two years Lenovo has shown a successful revenue growth, reporting a 5% increase in revenue to $11.8bn towards the end of September. Despite surpassing revenue projections, Lenovo is still struggling to grown its personal computers, smartphones and servers divisions, plus the company also lost its top spot in the PC market.
The detailed financials of the transaction are expected to close in Q1 in 2018.