updated 09:05 am EDT, Wed June 1, 2011
Lenovo snaps up Germany's Medion
Lenovo on Wednesday made a grab for market share on Wednesday by acquiring Medion. The buyout of the German PC builder was intended expressly to gain influence in Western Europe and should help it leapfrog multiple companies, including Apple. Its takeover would give it 14 percent of Germany and 7.5 percent of Europe, according to its own estimates and IDC data.
The buyout would see Lenovo oust Apple from the top five in the Western European market, according to Gartner estimates. Apple has been growing rapidly and leapt from 4.9 percent share in early 2010 to 6.6 percent this year, but it would immediately be passed over if its market share were to stay the same. It would also threaten ASUS at 8.6 percent and give Lenovo an opportunity to challenge Dell, at 9.6 percent.
Lenovo has been one of the fastest-growing PC designers worldwide and is near passing Acer. Most of its share gains have been in Asia, including its native China, where Europe and North America have been dominated by American companies like Apple, Dell, and HP along with Japan's Toshiba.
The Medion deal will see Lenovo pay the cash equivalent of almost $19 per share. Company head Gerd Brachmann would skip the public offer but sell 40 percent of Medion shares at the same price as well as take some Lenovo shares. At least 15 percent of Medion's remaining shares would have to be owned by someone else besides Brachmann.
Both the PC brands are due to remain separate should the deal successfully close in the summer.