Levovo announces plans to expand through acquisitions

Lenovo on Tuesday vowed to continue to acquire more companies in an effort to ramp up growth. Afterpurchasing Motorola Mobility for $2.91 billion from Google and IBM’s low-end server business for $2.3 billionearlier this year, the Chinese PC giant said it still has enough access to funds to keep growing the business. During an earnings call last month, Lenovo Chief Financial Officer Wong Wai Ming said Lenovo currently has access to around $4.7 billion in cash which includes $1.7 billion in loans. 

Chinese personal-computer giant Lenovo Group Ltd. 0992.HK +1.45%said Tuesday it is still looking to acquisitions to fuel growth, less than two months after unveiling a pair of deals worth $5 billion that already threaten to stretch the company’s resources. The two deals—$2.3 billion for International Business Machines Corp.’s IBM +0.54% low-end server business and $2.91 billion for Google Inc. GOOG +1.61% ‘s Motorola Mobility handset operations—are part of Lenovo’s efforts to diversify beyond PCs, which have been hit by weak demand for desktop and laptop computers world-wide. Lenovo, which last year became the world’s largest PC maker by shipments, has been looking for new sources of growth, focusing mainly on smartphones and enterprise products such as computer servers and storage systems.

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