Printed from http://www.electronista.com

Lenovo said to consider buying IBM's server business

updated 04:11 pm EDT, Sat April 20, 2013

IBM server segment could fetch $4.5 billion

Chinese PC manufacturer Lenovo may be heading back to IBM for yet another purchase, as Bloomberg reports that the company is in talks with IBM to buy its server business. The deal, still very much in the formative stages, could see Lenovo paying between $2.5 and $4.5 billion for IBM's server division, depending on what is included. A source close to the negotiations says an agreement on the deal could be weeks away.

The deal would mark the second time that Lenovo has bought an IBM division in order to add to its own capabilities. In 2005, the Chinese firm bought IBM's PC unit. Since then, Lenovo has gone on to become the world's second-largest PC manufacturer, and it was the only manufacturer to continue unit shipment growth over the last quarter as the rest of the PC industry foundered.

Bringing IBM's low-cost x86 servers into Lenovo's operations, some say, would be a good fit. Lenovo reportedly has a lower cost of doing business than does IBM, so it may be able to make better money off the division.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Dell AD211 Bluetooth speaker

For all of the high-priced, over-engineered Bluetooth speakers in the electronics market, there is still room for mass-market solution ...

VisionTek 128GB USB Pocket SSD

USB flash drives dealt the death blow to both the floppy and Zip drives. While still faster than either of the old removable media, sp ...

Kodak PixPro SL10 Smart Lens Camera

Smartphone imagery still widely varies. Large Megapixel counts don't make for a good image, and the optics in some devices are lacking ...

Sponsor

toggle

Most Commented

 
toggle

Popular News