Lenovo announced it will purchase a majority in Fujitsu's Client Computing branch in an effort to bolster its reduced PC market share.
Lenovo and the Development Bank of Japan have coordinated to acquire stake in Fujitsu's computing branch, with Lenovo purchasing a majority share at 51% and DBJ receiving 5% in the deal. Fujitsu will net about $245.45 million (28 billion yen) as part of the purchase contract, of which Lenovo will pay about $156.7 million in cash.
"The joint venture will focus on the research, development, design, manufacturing and sales of Client Computing Devices (CCD) for the global PC market," reads the press release announcement.
"Through this strategic collaboration, Fujitsu and Lenovo aim to drive further growth, scale and competitiveness in the PC businesses both in Japan and worldwide," the joint statement said. "The joint venture will leverage Fujitsu's capabilities in global sales, customer support, R&D, highly-automated and efficient manufacturing and systems integration that meet customers' demand. Furthermore, it will benefit from Lenovo's global scale and presence."
As per its Q2 earnings, Lenovo reported a profit decline and its first loss since 2015.