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Lenovo and IBM's x86 acquisition coming to a close

By Azizul Rahman Ismail - on 23 Oct 2014, 4:02pm

Lenovo and IBM's x86 acquisition coming to a close

From L-R: Khoo Hung Chuan, Country General Manager, and June Liew, Country Manager, Enterprise Business Group, Lenovo Malaysia.

Levono is now set to close its buy-over of IBM’s x86 server business globally. The collaboration of the two companies began in 2005, with Lenovo acquiring IBM’s PC business that includes the ThinkPad line of PCs.

“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 number three in the global server market,” said Lenovo Malaysia Country General Manager, Khoo Hung Chuan.

He added that Lenovo is now capable of providing end-to-end solutions to their enterprise and SME customers, and has now set its sights in becoming the number one in the market. Lenovo aims to achieve US$5 billion in total revenue in one year.

The Lenovo acquisition includes the acquisition of System X, BladeCenter and Flex System blade servers and switches, x86-based Flex integrated systems, NeXtScale and iDataPlex servers and associated software, blade networking and maintenance operations.

The purchase price was approximately US$2.1 billion. Approximately US$1.8 billion will be paid in cash, while the other US$280 million will be paid in stock, based on the closing price of Lenovo’s stock on September 26, 2014.

Lenovo Malaysia's Enterprise Business Group Country Manager, June Liew said that the x86 acquisition targets high-end enterprise and SMEs that are considered one of the key customer markets.

When asked regarding cloud services, Khoo said that in Malaysia, cloud services is a very new idea for Lenovo. He explained that there are currently no offerings in Malaysia, but the company is moving towards that direction.

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