IBM acquisition makes Lenovo Group the world's third largest server manufacturer

By Glen White
Lenovo Group has received U.S. and European approval to complete its acquisition of IBM Corp.'s low-end server business and plans to use it to grow...

Lenovo Group has received U.S. and European approval to complete its acquisition of IBM Corp.'s low-end server business and plans to use it to grow faster outside its personal computer business, Lenovo's chairman said Monday.

The $2.1 billion acquisition is due to close Wednesday following a successful review by a U.S. government security panel and European and Chinese regulators. Lenovo has said its acquisition of IBM will propel it from a No. 9 ranking among server manufacturers to No. 3 behind Hewlett Packard and Dell.

Lenovo, which bought IBM's PC unit in 2005, has carried out a flurry of acquisitions and launched initiatives including creating a smartphone brand to expand into faster-growing businesses. This year, the company also bought the Motorola Mobility smartphone business from Google for $2.9 billion.

Lenovo, with headquarters in Beijing and in Research Triangle Park, North Carolina, passed HP in 2013 as the No. 1 PC maker, though that achievement was tempered by a slowdown in demand as users shift to mobile devices. Lenovo has said it expects mobile devices to become the bulk of its business in coming years.

In the quarter ending in June, sales of smartphones, tablet computers and other wireless technology rose 32 percent over a year earlier, Lenovo reported earlier. That helped to boost quarterly profit by 23 percent to $214 million.

Share

Featured Articles

ProGlove & topsystem Revolutionise Logistics Solutions

ProGlove & topsystem team up to elevate data capture in manufacturing. Pierre Mikaelsson, CPO at ProGlove, tells us more about innovations in automation

Car Manufacturers Urged to prioritise Inclusive Driving

Matthew Walker of ABC Mobility Group says car manufacturers must ensure disabled drivers’ independence is not compromised by new cybersecurity regulations

Digitising Supply Chains for Due Diligence & Trade

Brent Dawkins, Product Marketing Director at QAD, discusses digital due diligence & why manufacturers must prioritise compliance in today's trade landscape

GTK: IoT, Sustainability & Touchscreen Tech in Manufacturing

AI & Automation

Jabil: Insights on Sustainable Manufacturing Progress Report

Sustainability & ESG

The Impact of NCSA on Manufacturing & the Supply Chain

Procurement & Supply Chain