5G Technology World

  • 5G Technology and Engineering
  • FAQs
  • Apps
  • Devices
  • IoT
  • RF
  • Radar
  • Wireless Design
  • Learn
    • 5G Videos
    • Ebooks
    • EE Training Days
    • FAQs
    • Learning Center
    • Tech Toolboxes
    • Webinars/Digital Events
  • Handbooks
    • 2024
    • 2023
    • 2022
    • 2021
  • Resources
    • Design Guide Library
    • EE World Digital Issues
    • Engineering Diversity & Inclusion
    • Engineering Training Days
    • LEAP Awards
  • Advertise
  • Subscribe

Lenovo Gets Approval for Acquisition of IBM Server Business

By Joe McDonald, AP Business Writer | September 29, 2014

BANGKOK (AP) — Lenovo Group has received U.S. and European approval to complete its acquisition of IBM Corp.’s low-end server business and plans to use it to grow faster outside its personal computer business, Lenovo’s chairman said Monday.

The $2.1 billion acquisition is due to close Wednesday following a successful review by a U.S. government security panel and European and Chinese regulators, the company said.

The IBM assets will add a “growth engine” to a growing array of businesses that include computers, mobile devices and services, chairman Yang Yuanqing said in a telephone interview.

Lenovo, which bought IBM’s PC unit in 2005, has carried out a flurry of acquisitions and launched initiatives including creating a smartphone brand to expand into faster-growing businesses.

Also this year, Lenovo bought the Motorola Mobility smartphone business from Google Inc. for $2.9 billion.

“Our mobile business and our enterprise business will be growing even faster than our PC business,” said Yang.

Lenovo has said the IBM acquisition will propel it from a No. 9 ranking among server manufacturers to No. 3 behind Hewlett Packard Co. and Dell Inc.

Lenovo, with headquarters in Beijing and in Research Triangle Park, North Carolina, passed HP in 2013 as the No. 1 PC maker, though that achievement was tempered by a slowdown in demand as users shift to mobile devices.

Lenovo has said it expects mobile devices to become the bulk of its business in coming years.

In the quarter ending in June, sales of smartphones, tablet computers and other wireless technology rose 32 percent over a year earlier, Lenovo reported earlier. That helped to boost quarterly profit by 23 percent to $214 million.

The latest acquisition includes IBM’s 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 price was reduced from the previously announced $2.3 billion due to a change in valuation of IBM’s inventory and deferred revenue, according to Lenovo. It said none of the terms of the agreement changed.

The IBM manager in charge of the x86 server business, Adalio Sanchez, will stay in that post with Lenovo, the company said.


Filed Under: Devices

 

Next Article

← Previous Article
Next Article →

Related Articles Read More >

High-directivity couplers optimized for 225 – 750 MHz applications
Integrated into IoT devices, iSIM poised to make inroads
Triple-radio and multiprotocol MCUs add application processors
5G vectors
How RedCap fits into 5G and IoT

Featured Contributions

  • Overcome Open RAN test and certification challenges
  • Wireless engineers need AI to build networks
  • Why AI chips need PCIe 7.0 IP interconnects
  • circuit board timing How timing and synchronization improve 5G spectrum efficiency
  • Wi-Fi 7 and 5G for FWA need testing
More Featured Contributions

EE TECH TOOLBOX

“ee
Tech Toolbox: 5G Technology
This Tech Toolbox covers the basics of 5G technology plus a story about how engineers designed and built a prototype DSL router mostly from old cellphone parts. Download this first 5G/wired/wireless communications Tech Toolbox to learn more!

EE LEARNING CENTER

EE Learning Center
“5g
EXPAND YOUR KNOWLEDGE AND STAY CONNECTED
Get the latest info on technologies, tools and strategies for EE professionals.

Engineering Training Days

engineering
“bills
5G Technology World
  • Enews Signup
  • EE World Online
  • DesignFast
  • EDABoard Forums
  • Electro-Tech-Online Forums
  • Microcontroller Tips
  • Analogic Tips
  • Connector Tips
  • Engineer’s Garage
  • EV Engineering
  • Power Electronic Tips
  • Sensor Tips
  • Test and Measurement Tips
  • About Us
  • Contact Us
  • Advertise

Copyright © 2025 WTWH Media LLC. All Rights Reserved. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media
Privacy Policy

Search 5G Technology World