Lenovo set to close $2.1bn IBM server deal this week
Both firms' requirements have been satisfied and acquisition will take place on 1 October
Lenovo and IBM have ironed out all their differences and are set to close their $2.1bn (£1.3bn) x86 server acquisition deal by 1 October.
Under the deal, Lenovo is acquiring System x, BladeCenter and Flex System blade servers and switches, x86-based Flex integrated systems, NeXtScale and iDataPlex servers and associated software, blade networking and maintenance operations.
IBM will keep hold of its System z mainframes, Power Systems, Storage Systems, Power-based Flex servers, PureApplication and PureData appliances.
Yang Yuanqing, chairman and CEO of Lenovo, 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.”
Gerry Smith, executive vice president of Lenovo Group, added: “The acquisition is a clear demonstration of the confidence we have earned based on our consistent track record as a responsible global investor and as a secure and reliable technology provider.
“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.”
The two firms have also established a strategic alliance where Lenovo will act as an OEM to IBM and resell selected products from IBM’s storage and software portfolio. Lenovo also stressed that it is buying IBM’s x86 server business intact and is committed to following the IBM x86 product road map, including its Flex and x86-based PureFlex integrated systems.
They added that IBM will continue to provide maintenance delivery on Lenovo’s behalf for an extended period of time, so customers will experience a "seamless transition" with no change in their maintenance support.
The global team of the IBM x86 server business will be organised under Lenovo’s Enterprise Business Group.
Adalio Sanchez, who led the x86 server business at IBM, will continue in this capacity at Lenovo as senior vice president of Enterprise Systems, reporting to Gerry Smith.
Once closed in what is termed the "major markets", the transaction is expected to close in most other countries later this year, with the few remaining countries following in early 2015, Lenovo said.