Lenovo recently announced that it is poised to acquire IBM's X86 servers. The definitive agreement, released earlier today will include the IBM System x, BladeCenter and Flex System blade servers and switches, as well as the NeXtScale, iDataPlex servers, and x86-based flex integrated systems. The two companies have had a collaborative agreement since 2005, when Lenovo acquired IBM's ThinkPad line of PCs.
This agreement also includes all software, maintenance operations and blade networking for the systems above. Lenovo announced that the purchase price for all of these systems would be around $2.3 billion. The company plans to pay 2 billion of this price with cash and balance from Lenovo stocks.
“This acquisition demonstrates our willingness to invest in businesses that can help fuel profitable growth and extend our PC Plus strategy,” said Yang Yuanqing, chairman and CEO, Lenovo. “With the right strategy, great execution, continued innovation and a clear commitment to the x86 industry, we are confident that we can grow this business successfully for the long-term, just as we have done with our worldwide PC business.”
Under the acquisition, Lenovo will take over customer service and maintenance for the above listed solutions, and is expected to offer employment to the 7500 IBM employees affected by the change. IBM will retain ownership of their System z mainframes, Power Systems, Storage Systems, Power-based Flex servers, and PureApplication and PureData appliances, and will continue to develop the Windows and Linux software portfolio for the x 86 line.
It was also announced that the two companies will also enter into a strategic partnership that will include the development of a reseller and OEM plan for sales of selected IBM products.
