International Business Machines Corp. (IBM) agreed to sell its low-end server business for $2.3 billion to China’s Lenovo Group Ltd. (992) as a way to decrease its reliance on computer hardware. The price includes about $2 billion of cash, with the rest coming in shares of Beijing-based Lenovo, the two companies announced today. The transaction will face regulatory review, including likely national-security questions, that could slow or scuttle the purchase. The sale announcement comes in the wake of IBM reporting its seventh straight quarter of declining revenue this week, with a shrinking computer-hardware business hurting results yet again.
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