TweakTown
Tech content trusted by users in North America and around the world
5,676 Reviews & Articles | 36,078 News Posts
Weekly Giveaway: Fractal Design Arc Cases Contest (Global Entry!)

Lenovo breaks out checkbook, purchases x86 IBM server unit for $2.3B

Lenovo will purchase the IBM x86 server business unit, as the Chinese maker seriously pushes into the server market (HKG:0992, NYSE:IBM)

| Computer Systems News | Posted: Jan 23, 2014 7:18 pm

Chinese PC manufacturer Lenovo will purchase IBM's lower-end x86 server unit for $2.3 billion after months of continued negotiations on both sides. The deal, once approved by U.S. government regulators, will give IBM the ability to focus on software and IT services.

 

TweakTown image news/3/5/35036_01_lenovo_breaks_out_checkbook_purchases_x86_ibm_server_unit_for_2_3b.jpg

 

IBM will continue to manufacture higher-end servers, and remains the No. 2 server manufacturer, trailing only behind Hewlett-Packard.

 

"This acquisition demonstrates our willingness to invest in businesses that can help fuel profitable growth and extend our PC Plus strategy," said Yang Yuanging, Lenovo CEO, in a statement. "With the right strategy, great execution, continued innovation and a clear commitment to the x86 industry, we are confident that we can grow this business successfully for the long-term, just as we have done with our worldwide PC business.

 

Lenovo, the No. 1 global PC manufacturer, has struggled to compete against HP, Dell, and other manufacturers in the server market. The Chinese manufacturer wants to shift focus to the server market, where profit margins are higher than the regular PC and notebook business.

NEWS SOURCE
News.lenovo.com

Related Tags

Further Reading: Read and find more Computer Systems news at our Computer Systems news index page.

Do you get our news RSS feed? Get It!

Post a Comment about this news

Latest Tech News Posts

View More News Posts

Latest Downloads

View More Latest Downloads

TweakTown Web Poll

Question: Did EA kill the Battlefield franchise with the terrible BF4 issues?

Yes, Battlefield is doomed

No, Battlefield will live on strong

I'm not sure, but I know EA needs to improve its game

or View the Results

View More Polls

Forum Activity

View More Forum Posts

Press Releases

View More Press Releases
Get TweakTown updates via Facebook!
Just click the "Like" button below