Lenovo Buys IMB PC Group
Posted on December 9, 2004
This is huge news for the computer industry. It is also a big deal for China and its growing tech industry. Lenovo, a computer company based in China, will purchase IBM's PC group for $1.25 billion and assume about $500,000 in debt. As part of the deal IBM will get a 18.9% stake in Lenovo.
According to CNET the combined PC groups will be based in New York and have 10,000 IBM employees and 9,200 Lenovo employees.
Chuanzhi Liu, current chairman of Lenovo, said in a statement, "As Lenovo's founder, I am excited by this breakthrough in Lenovo's journey towards becoming an international company. Over the past 20 years, I've watched Lenovo develop into the leading IT company both in China and throughout Asia. Since the beginning, however, our unwavering goal has been to create a truly international enterprise."
Lenovo, which becomes the third biggest PC manufacturer with the acquisition, will have to work hard to win over concerned consumers and businesses that will have questions about maintenance and computer support.
A press release from Lenovo about the acquisition can be found here.