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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.

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China’s Lenovo to Buy IBM Server Unit for $2.3 Billion amid Slump

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.

China’s Lenovo to Buy IBM Server Unit for $2.3 Billion amid Slump (Bloomberg)

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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Written By

Paul Dykewicz is the editorial director of the Financial Publications Group at Eagle Publishing Inc., www.eaglepub.com, of Washington, D.C. Eagle publishes five free, e-letters, 10 weekly trading services and five monthly investment newsletters, Forecasts & Strategies, Successful Investing, Cash Machine, Growth & Dividend Report and The Alpha Investor Letter. He also is the editor of Eagle Daily Investor and the author of the inspirational book, "Holy Smokes! Golden Guidance from Notre Dame's Championship Chaplain."

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China’s Lenovo to Buy IBM Server Unit for $2.3 Billion amid Slump

China’s Lenovo to Buy IBM Server Unit for $2.3 Billion amid Slump (Bloomberg)

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.

Newsletter Signup.

Sign up to the Human Events newsletter

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