IBM announced today that they have sold off their PC business to Lenovo Group Limited.
IBM retain an 18.9% ownership share in the Lenovo group, but it is safe to say the pc manufacturing business is well and truly out of IBM.
- Creates world’s third-largest PC business with approximately US$12 billion annual revenue for 2003
- Global business with worldwide reach, powerful brand name, balanced product offerings and leading R&D capabilities
- Long-term strategic alliances between Lenovo and IBM in PC sales, service and financing worldwide
- Worldwide headquarters in New York; principal operations in Beijing and Raleigh, North Carolina
- Transaction of US$1.25 billion in cash, equity; total transaction consideration of approximately US$1.75 billion
- IBM to take 18.9 percent equity stake in Lenovo; transaction expected to be completed in second quarter 2005