Lenovo To Buy IBM Business?
Lenovo are said to be in “advanced discussion” to purchase IBM’s x86 server business, sources told Bloomberg.
Chinese-owned Lenovo and US tech darling IBM are no strangers to cutting deals, the former purchased IBM’s personal computer division in late 2004 for US$1.25bn.
Since then, Lenovo has turned the division and IBM’s ThinkPad brand around, and is now the world’s biggest PC maker, having snatched the title off HP in Q4, last, despite the PC slowdown, according to analysts.
Lenovo are now looking “counter falling global PC shipments by expanding into storage equipment and the servers that run corporate networks,” the report indicates.
The deal could be completed “within weeks.”
IBM are looking to ditch lower margin hardware divisions completely as it seeks to capitalise on opportunities in cloud services.
Recently, it completed the purchase of Aspera, which speeds the movement of massive data files around the world.