Language Selection

English French German Italian Portuguese Spanish

Lenovo completes acquisition of IBM

Filed under

"Within weeks, we will be introducing new products as the new Lenovo," Stephen Ward, Lenovo's chief executive officer, said in a statement.

Lenovo Chairman Yang Yuanqing called the purchase an "historic event" for the company.

The joint venture trails only Dell and Hewlett-Packard in sales, but still gives IBM a hand in the PC business. Under the deal, IBM takes an 18.9 percent stake in Lenovo. Lenovo paid $1.25 billion for the IBM PC unit and assumed debt, which brought the total cost to $1.75 billion.

Based on both companies' 2003 sales figures, the joint venture will have an annual sales volume of 11.9 million units and revenue of $12 billion, increasing Lenovo's current PC business fourfold.

Lenovo will be the preferred supplier of PCs to IBM and will be allowed to use the IBM brand for five years under an agreement that includes the "Think" brand. Big Blue has promised to support the PC maker with marketing via its IBM corporate sales force.

The deal, which was announced in December 2004, has come under regulatory scrutiny over national security concerns. The Committee on Foreign Investments in the United States, which reviews acquisitions of U.S. businesses by companies based outside the country, has reportedly showed concern that Chinese operatives might use an IBM facility for industrial espionage.

However, the Federal Trade Commission indicated in January that it would not raise any objections to the Lenovo deal on the basis of how the sale might effect competition in the market.

The combined venture will have roughly 10,000 IBM employees and 9,200 Lenovo employees. It will be headquartered in New York, with operations in Beijing and in Raleigh, N.C.


More in Tux Machines

KDBUS Continues Maturing, But Will We See It For Linux 4.4?

New KDBUS patches continue being published for this in-kernel IPC mechanism based on D-Bus, but it hasn't been communicated yet whether Linux 4.4 is the next target for hoping to mainline this controversial code. Just yesterday was a set of 44 patches in attempting to cleanup the KDBUS code further. There's also been an assortment of other KDBUS patches floating around the kernel mailing list. Read more

Bodhi: Detour and Forum Themes now Moksha Compatible

Today I am happy to announce we have completed work on the first couple of themes we are updating to be compatible with Moksha. Read more

Science on Android

I have covered a lot of different scientific packages that are available under Linux in this space, but the focus has been on Linux running on desktop machines. This has been rather short-sighted, however, as lots of other platforms have Linux available and shouldn't be neglected. So in this article, I start looking at the type of science you can do on the Android platform. For my next several articles, I plan to include occasional Android applications that you may find useful. Read more

Linksys WRT router gains faster SoC, more RAM, OpenWrt

Linksys has launched a “WRT1900ACS” router that updates the AC version with a faster dual-core, 1.6GHz SoC, twice the RAM (at 512MB), and OpenWrt support. In early 2014 when Linksys resurrected the hackable Linksys WRT54G WiFi router in a new WRT1900AC model, the Belkin subsidiary said the the Linux-based router would also support the lightweight, networking-focused OpenWrt Linux distribution. With the new WRT1900ACS, Linksys is making life easier for OpenWrt lovers by providing full, open source OpenWrt support out of the box. Read more