Lenovo completes takeover of X86 server business from IBM

Want China Times, Xinhua 2014-10-03

The Lenovo logo. (Photo/CFP)

Lenovo Group, the world's biggest personal computer maker, has finished the acquisition of the X86 server hardware and related maintenance services business from IBM, Lenovo said late Thursday.

In a statement filed to the Hong Kong Stock Exchange, the Beijing-based PC maker said it paid US$1.8 billion in cash and allotted 182 million Lenovo shares to IBM for the takeover.

Within one year from Oct. 1, IBM is restricted from offering, selling, transferring or otherwise disposing of the 182 million shares, according to the statement.

With the acquisition, Lenovo has become the world's third largest manufacturer of X86 servers.

The new business will further enhance Lenovo's competitiveness in enterprise equipment and services, said Yang Yuanqing, Lenovo board chairperson and CEO.

Lenovo share prices opened 0.5% lower to HK$11.5 (US$1.48) on Friday in Hong Kong