Lenovo to purchase part of IBM's server business
AP and AFP
January 24, 2014, 12:06 am TWN
BEIJING/NEW YORK--Lenovo Group has agreed to buy part of IBM's server business for US$2.3 billion, adding to a product line-up that relies heavily on consumer-oriented computers and smartphones.
Lenovo said Thursday it is acquiring IBM's x86 server business and expects to offer jobs to 7,500 IBM employees in locations around the world.
The two companies said IBM Corp. 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.
Investors Wednesday pummeled IBM after the computer and technology giant reported disappointing sales and said most of its 2014 earnings would come in the latter half of the year.
Shares of International Business Machines fell 3.3 percent to US$182.25, the biggest loser in the Dow Jones Industrial Average.