Lenovo will complete the $2.1bn acquisition of IBM’s x86 server unit on 1 October, following a successful review by the US Government’s security panel and European and Chinese regulators.
Aimed at boosting its growth outside personal computer business, the acquisition is expected to offer Lenovo a growth engine to an range of businesses including PCs, mobile devices and services.
Lenovo chairman and CEO Yang Yuanqing said: "With the close of the x86 acquisition, Lenovo will add a world-class business that extends our capabilities in enterprise hardware and services, immediately making us a strong number three in the global server market.
"Now, our priorities are to ensure a smooth integration and deliver a seamless transition for customers.
"By combining Lenovo’s global reach, efficiency and operational excellence with IBM’s legendary quality, innovation and service, I am confident that we will have competitive advantages to help us drive profitable growth and build Lenovo into a global enterprise leader."
In July, the Chinese Ministry of Commerce’s anti-monopoly bureau approved Lenovo’s proposal to snap up IBM’s low-end server business, even as national security concerns clouded the largest Chinese tech acquisition deal.
As part of the deal, Lenovo will get access to IBM’s System x, BladeCentre and Flex System blades and switches, x86-based Flex integrated systems, NeXtScale and iFataPlex servers.
Under the strategic alliance established by both the companies, Lenovo will serve as an original equipment manufacturer (OEM) to IBM and resell particular storage and software products from IBM.
The x86 server team will continue to be headed by ex-IBM executive Adalio Sanchez.
Lenovo Group executive vice president and Enterprise Business Group and Americas Group president Gerry Smith said: "Lenovo has big plans for the enterprise market.
"Over time, we will compete vigorously across every sector, using our manufacturing scale and operational excellence to repeat the success we have had with PCs."
