Lenovo strengthen European presence with Medion acquisition.
Medion is pretty well known in Germany for providing most of the budget computers and electronics deals for discount chain Aldi. Now Lenovo picks up Medion AG to expand in Europe. The acquisition, when completed, will double Lenovo’s market share in Germany and make it the third-largest PC Company in Europe’s largest PC market. Together, the combined company will have more than 14% share in the German PC market and approximately 7.5% share in the Western Europe PC market.
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Under the terms of the agreement, Lenovo will commence a public offer for all outstanding public shares of Medion AG for 13 Euros per share in cash. The WSJ reports that this puts the value of Medion at about $900 million. Medion Founder Gerd Bachmann will sell 40% of Medion shares to Lenovo in a cash and shares deal. He will continue to hold 20% of Medion AG shares. Medion AG will continue to operate the Medion brand and will benefit from the Lenovo 'back end'.
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I think Lenovo found a great deal here that will accelerate their European business.