Lenovo to buy IBM's low-end server business for $2.3 billion

Lenovo’s much-anticipated deal for IBM’s low-end server business was announced Thursday. Lenovo will pay $2 billion in cash and the rest in stock for the IBM x86 server business. IBM will continue to develop and evolve its Windows and Linux software portfolio for the x86 platform, and the two will enter a reseller agreement for an array of IBM’s storage systems and software portfolio. Lenovo is expected to offer 7,500 IBM workers around the world employment. 

Lenovo has announced that it has agreed a deal to buy IBM’s low-end x86 server business for US$2.3 billion, in what is one of the largest deals involving an IT company in China to date. The agreement will see IBM keep hold of some of its related assets – System z mainframes, Power Systems, Storage Systems, Power-based Flex servers, and PureApplication and PureData appliances — while around 7,500 of its staff across China, Taiwan, the US and other countries will be offered the chance to join Lenovo.

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