Lenovo nearly completes US$2.1bn acquisition of IBM’s x86 server business

29 Sep 2014

Computer tech company Lenovo is set to soon complete its US$2.1bn acquisition of tech giant IBM’s x86 server business that will make Lenovo the third-largest operator in the global x86 server market.

Having announced the deal in January, Lenovo will begin the transition process on Wednesday (1 October) in most major markets. The handover is expected to be completed by early 2015.

According to the terms of the deal, the firm is acquiring a variety of IBM systems, including System x, BladeCenter and Flex System blade servers and switches. IBM will retain its System z mainframes, Power Systems, Storage Systems, Power-based Flex servers, PureApplication and PureData appliances.

“With the close of the x86 acquisition, Lenovo will add a world-class business that extends our capabilities in enterprise hardware and services, immediately making us a strong No 3 in the global server market,” said Yang Yuanqing, chairman and CEO of Lenovo, in a statement. 

“Now, our priorities are to ensure a smooth integration and deliver a seamless transition for customers. By combining Lenovo’s global reach, efficiency and operational excellence with IBM’s legendary quality, innovation and service, I am confident that we will have competitive advantages to help us drive profitable growth and build Lenovo into a global enterprise leader.”

A strategic alliance has also been established between both companies, meaning Lenovo will now act as an original equipment manufacturer to IBM.

In January, internet search giant Google revealed the sale of its Motorola Mobility unit to Lenovo for US$2.91bn. That deal is likely to be completed by 2015.

Lenovo image via Shutterstock

Dean Van Nguyen was a contributor to Silicon Republic