Lenovo announces completion of acquisition of IBM x86 server business

September 29, Lenovo Group and IBM announced the completion of Lenovo's acquisition of IBM x86 server business of all relevant regulations, is expected to be completed October 1. After completion of the acquisition, Lenovo will become the world's third largest x86 server manufacturers.

Lenovo's acquisitions include:

System x, BladeCenter, and Flex blade servers as well as switches, x86 flex integration Systems, NeXtScale and iDataPlex servers, and related software, blade networks, and operational dimensions.

IBM retained business includes:

System z Mainframe, power BAE, storage systems, Power Architecture based flex servers and pureapplication application platforms, and Puredata devices.

Lenovo's acquisition of IBM x86 server business will follow the IBM x86 product planning, including Flex and x86 based Pureflex integration systems, and will continue to introduce innovative products. IBM will be in the future for some time to represent Lenovo to provide maintenance services to customers, related maintenance support services remain unchanged.

The global team of IBM x86 server business will be merged into Lenovo Enterprise Business group, and Adalio Sanchez, who leads the x86 server business in IBM, will join Lenovo as senior vice president of enterprise systems business and continue to lead the business directly to Lenovo Group's executive vice President Gerry Smith report.

The total amount of the acquisition is about USD 2.1 billion, of which about 1.8 billion U.S. dollars (after the expected adjustment) will be paid in cash on the date of completion of the transaction, with a balance of about 280 million dollars to be paid by Lenovo (based on the closing price of Lenovo shares on September 26, 2014). This transaction complies with all regulatory requirements and all general terms and practices required for the completion of the transaction, including approval from the U.S. Overseas Investment Commission (CFIUS), the European Union and the Ministry of Commerce of China.

The handover will take place in Wednesday in countries and regions that are part of the initial delivery, including most major markets. The handover of most other countries will be completed by the end of this year and a handful of remaining countries will be completed by early 2015.