Lenovo

The rumor

Earlier this year, we came to know that Lenovo is planning to buy the cheap server division of the technology giant IBM. The news was that Chinese Company Lenovo and IMB have agreed upon a deal according to which Lenovo is going to buy x86 server division of IBM for $2.3 billion.

The deal

On 29 September 2014 Reuters disclosed that both companies will finalize a deal on 01 October 2014. However, the final deal is a little lower than rumored.

Reason

Lenovo has given an explanation why the final price is lower than it was expected. According to the company, the value of inventory and revenue liability was higher at the beginning of the year. At the time of final deal the value of inventory has reduced and the revenue liability has deferred; therefore, the price has also reduced.

Lenovo’s jump

During the month of January when the two companies were discussing the deal, Lenovo had a 2% share of world’s server business. It was predicted that after this deal Lenovo will get 14% of the international server business. This will be a great achievement for China’s biggest computer manufacturer which is already looking new business customers.

Previous deal

This deal is thought to be the second biggest deal between IBM and Lenovo. The first one was made when Lenovo acquired PC division of IBM back in 2005. That deal also included ThinkPad and ideaPad series.

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