Lenovo Group Ltd, the world's largest PC maker, agreed to purchase IBM Corp's low-end server business in a long-awaited deal valued at about $2.3 billion, the biggest-ever tech acquisition by a Chinese company. Lenovo will pay $2.07 billion in cash and the rest with stock of the Beijing-based PC maker, the company said in a statement to the Hong Kong exchange on Thursday.The deal surpasses Baidu Inc's acquisition of 91 Wireless from NetDragon Websoft Inc for $1.85 billion last year, according to Thomson Reuters data, and underscores the growing clout of the country's technology firms as they look to expand overseas.The acquisition will allow Lenovo to diversify revenue away from the shrinking PC business and remodel itself as a growing force in mobile devices and data storage servers. Analysts said Lenovo will likely find it easier than International Business Machines (IBM) to sell the x86 servers to Chinese companies as Beijing tries to localise its IT purchases in the wake of revelations about U.S. surveillance.The sale allows IBM to dump its low-margin x86 business - which sells less powerful and slower servers than the company's higher-margin offerings - and focus on the firm's decade-long shift to more profitable software and services. The unit had reported seven straight quarters of declining revenue.
International Business Machines Corporation (IBM) is an information technology (IT) company. Shares of IBM fell by 3.28% or $-6.18/share to $182.25. In the past year, the shares have traded as low as $172.57 and as high as $215.90. On average, 5178020 shares of IBM exchange hands on a given day and today's volume is recorded at 13800586.
Thomson Reuters Corporation (Thomson Reuters) is a provider of information for the world?s businesses and professionals. Shares of TRI fell by 1.42% or $-0.54/share to $37.37. In the past year, the shares have traded as low as $29.33 and as high as $38.73. On average, 775450 shares of TRI exchange hands on a given day and today's volume is recorded at 667670.
Thomson Reuters Corporation (Thomson Reuters) is a provider of information for the world?s businesses and professionals. Shares of TRI fell by 0.5% or $-0.21/share to $41.43. In the past year, the shares have traded as low as $29.40 and as high as $42.10. On average, 931630 shares of TRI.TO exchange hands on a given day and today's volume is recorded at 1331749.
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