Lenovo buys part of IBM server business for $2.3bnBy AP News Jan 23, 2014 5:42PM UTC
BEIJING (AP) — Lenovo Group has agreed to buy part of IBM’s server business for $2.3 billion, adding to a product line-up that relies heavily on consumer-oriented computers and smartphones.
Lenovo said Thursday it is acquiring IBM’s x86 server business and expects to offer jobs to 7,500 IBM employees in locations around the world.
Lenovo and IBM have collaborated for a number of years. The Chinese company entered the global personal computer market in 2005 by acquiring IBM’s PC unit. It has since expanded into wireless products including smartphones and tablets.
The two companies said IBM Corp. will continue to develop Windows and Linux software for the x86 platform and will provide service to customers for an extended period after the acquisition.