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Lenovo Buys IBM’s x86 Server Business for $2.3 Billion

LenovoThe Chinese PC vendor that just can’t stop growing has today added another component to its expanding empire by agreeing to buy IBM’s x86 server business for $2.3 billion. Initially rumored almost a year ago, the price of this deal is below the expected range, with IBM apparently keen to offload what Lenovo believes is a business that it can “successfully grow for the long-term.” Though it lacks the consumer-facing impact of Lenovo’s first big deal with IBM — the acquisition of the ThinkPad brand and line of personal computers — this move underscores Lenovo’s ambition to continue expanding rapidly. For IBM’s part, “this divestiture allows IBM to focus on system and software innovations,” says Senior VP Steve Mills. The company will continue developing Windows and Linux software for the x86 platform, but the hardware component will soon be handed off to Lenovo in exchange for $2 billion in cash and the rest in Lenovo shares.

Read the full story at The Verge.

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More Stories By Shelly Palmer

Shelly Palmer is the host of Fox Television’s "Shelly Palmer Digital Living" television show about living and working in a digital world. He is Fox 5′s (WNYW-TV New York) Tech Expert and the host of United Stations Radio Network’s, MediaBytes, a daily syndicated radio report that features insightful commentary and a unique insiders take on the biggest stories in technology, media, and entertainment.

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