PC maker Lenovo Group buys part of IBM server business for $2.3 billion
Lenovo and IBM have collaborated for a number of years. The Chinese company entered the global personal computer market in 2005 by acquiring IBM's PC unit. It has since expanded into wireless products including smartphones and tablets.
Lenovo was declared the No. 1 personal computer maker in the third quarter of last year by research firms Gartner and IDC, surpassing rival Hewlett Packard Co. That was tempered, however, by the steady erosion of worldwide PC demand.
IBM, based in Armonk, New York, will continue to develop Windows and Linux software for the x86 platform and will provide service to customers for an extended period after the acquisition, Lenovo said.
The two companies also plan to enter into a strategic relationship. It will include a reseller agreement for IBM's Storwize disk storage systems, tape storage systems, and certain cloud, file system, platform computing and system software products.
The acquisition announced Thursday covers 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, Lenovo said.
IBM will retain its System z mainframes, Power Systems, Storage Systems, Power-based Flex servers, and PureApplication and PureData appliances.
Lenovo Group: www.lenovo.com