Lenovo completes acquisition of IBM x86 server business Layout Enterprise-class market

September 29, 2014, Lenovo Group and IBM announced the completion of Lenovo's acquisition of IBM x86 server business of all relevant regulations, the expected acquisition will be completed on October 1, 2014. The global team of IBM x86 server business will be merged into Lenovo Enterprise Business group, and Adalio Sanchez, which leads the x86 server business in IBM, will join Lenovo as senior vice president of enterprise system business to continue to lead the business and report directly to Gerry Smith. After the acquisition is completed, Lenovo will become the world's third largest x86 server (x86 server global market total size of 42.1 billion U.S. dollars). Lenovo's acquisition includes 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 retains its System Z mainframe, power BAE, storage systems, Power Architecture Flex servers and Pureapplication application platforms, and Puredata devices. 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. Yang, chairman and chief executive of Lenovo Group, said, "We will now focus on the smooth integration of the business and provide a smooth transition for our users." Gerry Smith, executive vice president of Lenovo Group, Enterprise Business Group and Americas president, said Lenovo has made ambitious plans for the server business and will achieve the same outstanding achievements in the future as in the PC field. Lenovo's acquisition of Motorola Mobility from Google (Weibo) is also underway.