Nine months after it was first announced, lenovo's acquisition of ibm's x86 server business is headed towards closing having received regulatory approval from the us, the european commission and china, the companies will start closing the us$21 billion deal on wednesday. Case study: the acquisition case of american ibm personal computer by the chinese computer company lenovo this article uses swot matrix to analysis the post-merger situation of lenovo's pc business and try to demonstrate a possible roadmap for future business. Introduction on may 1, 2005, the lenovo group acquired ibm's personal computing division (ibm pc) for $125 billion, achieving the goal of its ambitious founder, liu as bill grabe, ga's representative on lenovo's board, stated: lenovo's acquisition of ibm mark the start of something bigger. Lenovo's acquisition of ibm's personal computer division accelerated access to foreign markets while improving both its branding and technology lenovo paid $125 billion for ibm's computer business, including $650 million in cash, 600 million shares and an additional $500 million of ibm's debt.
Lenovo acquired ibm's personal computer business in 2005, including the thinkpad laptop and tablet lines lenovo's acquisition of ibm's personal computer division accelerated access to foreign markets while improving both lenovo's branding and technology lenovo paid us$125 billion for.
Lenovo-finalizes acquisition-of-ibm-x86-server lenovo announced that it will close the acquisition deal of business of ibm x86 servers on wednesday, october 1st as part of the acquisition of $ 23 billion dollars, lenovo is acquiring system x servers and bladecenter blade switches and flex. According to the acquisition agreement signed between lenovo group and ibm on december 8 last year, lenovo has paid us$125 billion for all the pc business of ibm, including us$650 million in cash and lenovo's shares valued at us$600 million after the trade, ibm will hold. Lenovo's pending acquisition of motorola mobility from google will make it the world's third-largest smartphone maker, while further strengthening its as described in the january announcement of lenovo's acquisition of ibm's x86 server business, lenovo and ibm have also established a.
Lenovo has said the ibm acquisition will propel it from a no 9 ranking among server manufacturers to no 3 behind hewlett packard co and dell inc lenovo, with headquarters in beijing and in research triangle park, north carolina, passed hp in 2013 as the no 1 pc maker, though that achievement. While ibm wants to focus on lucrative services, lenovo executives cited the pc business's gross margins of 20 per cent as part of its appeal ibm's competitors predicted the deal would fail when was the last time you saw a successful merger or acquisition in the computer industry said michael.
Articles and viewpoints lenovo completes acquisition of ibm personal computing division the acquisition creates, in lenovo, the third-largest personal computing company in the world, with approximately $13 billion in revenues, annual product volumes of roughly 14 million units (for 2004. In 2005, lenovo, china's leading computer manufacturer, purchased ibm pc for $175 billion and is currently the world's fourth-largest computer company by. Lenovo, the world's leading pc maker in terms of volume and market share, is still interested in acquiring ibm's server division though lenovo's been able to grow its pc business while nearly every other oem has seen declines in shipments the past several quarters. Lenovo group announced sunday that its acquisition of ibm's pc unit has been completed, saying the process was finished ahead of schedule with the completion of the $175 billion deal -- expected to happen before the end of the second quarter, on june 30 -- lenovo has become a much larger.
I general presentation of the case study (summary) by the very beginning of the 21st century, it became increasingly common for chinese firms to acquire western companies however, there was general skepticism over chinese companies' ability to make and manage mergers and acquisitions. Lenovo will offer employment to roughly 7,500 ibm employees associated with that part of big blue's server operations in addition to owning the rights to the ibm's decision to sell part of its server business to lenovo is wholly unsurprising, considering the existing relationship between the two firms. With the acquisition of ibm's pc department, lenovo could rise to third place in the same ranking top internally lenovo has a market share of 27%, making it the target of lenovo is to conquer boyh the european and the american markets the difficulties that may arrise from the acquisition of ibm are. Lenovo group limited and ibm today announced the closing of the acquisition of ibm's personal computing division by lenovo, creating a new international it competitor and the third-largest personal computing company in the world.
Lenovo's acquisition of ibm's pc business a decade ago transformed both partners lenovo gets a short birthday party, but now has to digest two more deals if it's going to be an enterprise juggernaut. Lenovo is keen on acquiring another business from ibm, this time eyeing the big blue's x86-based server unit with conditions met, the acquisition should start closing soon.
Free essay: case study lenovo's acquisition of ibm's pc division: a short-cut to be a world player or a lemon that leads nowhere strategic problem definition: • acquisition of ibm - pc division as part of the expansion strategy causes: • lenovo was number 9 on pc market and had 22% market. For example, they lenovo's acquisition of ibm's pc division 4 could tolerate neither the regular daily collective morning exercises nor the ritual of singing the as part of the merger agreement, lenovo could use the ibm brand on its products in the 18 months following the acquisition. 41 development of acquisition (time line) fig 3 2002: ibm approached lenovo to sell its pc business dec 2004: lenovo announced interest to 2002: talks about acquisition of ibm pc unit started out in the summer of 2002, where ibm's then chief financial officer went to china hoping to sell.