IBM x86 Server Business Transaction

On January 23, 2014, Lenovo agreed to acquire IBM's x86 server business and associated assets for $2.3 billion.

This webpage provides a range of background and information about the transaction, and will be updated on a regular basis.

VideoIBM Edge2014: "Panel Discussion: The Lenovo Opportunity"
LinkPress Release: Lenovo Plans to Acquire IBM x86 Server Business
LinkLenovo's Service Commitment to the x86 Business
LinkPress Release: Lenovo's statement on the strike at the IBM server factory in Shenzhen
PDFPresentation: Lenovo-IBM x86 Acquisition Overview
PDFOne pager: Lenovo-IBM x86 Acquisition Overview
PDFPresentation: IBM x86 Acquisition Investor Call
PDFLenovo in the United States Factsheet
LinkIBM Winning in Transition website
LinkIBM System x
LinkIBM.com


Lenovo Statement on MOFCOM Approval of IBM x86

"We can confirm the information MOFCOM website is accurate. We are pleased with our progress as we continue to work through the necessary regulatory clearances. "

Select Media Coverage:

Third-Party Commentary:

"For the most part, this will be a nearly invisible and non-disruptive transition for the vast majority of NA and EMEA IBM server customers. My expectation is that both companies will quickly approve this transaction and the continuity of IBM management and field organization will ensure an orderly customer-facing execution. Lenovo customers worldwide get a major expansion of potential options."
Richard Fichera, Forrester analyst report
January 23, 2014
http://blogs.forrester.com/richard_fichera/14-01-23-lenovo_buys_ibm_x86_server_business_0

"...the deal is far better for both companies than I would have thought possible. There is no loser here; both firms end up far stronger by doing this than they were, and that is the definition of a good deal."
Rob Enderle, TechNewsWorld
January 27, 2014
http://www.technewsworld.com/story/79854.html

"...the most important segment of the world that needs to be happy with the new Lenovo are the customers of IBM x86...This deal looks to benefit everyone involved except the competitors."
Bill Moran and Rich Ptak, Ptak Associates analyst report
January 23, 2014
http://ptakassociates.blogspot.co.uk/2014/01/finally-lenovo-buys-ibms-x86-server.html

"The acquisition of IBM's low-end server business by Lenovo may be a win-win situation. IBM, which reported its seventh straight quarter of declining revenue last week, is trying to reinvent itself once more by focusing on high-growth areas, such as cloud computing and software. The deal will also give Lenovo about 12% of the world's server market. Although the acquired business unit is barely profitable, by increasing sales volume, Lenovo could transform IBM's low-end server unit into a cash-flow machine, as the company is well-known for using an aggressive pricing strategy combined with high-quality quality control to successfully capture market share."
Adrian Campos, Motley Fool Writer
January 27, 2014
http://www.fool.com/investing/general/2014/01/27/why-lenovo-is-buying-ibms-server-business.aspx

"Lenovo has a good track record of retaining IBM employees ,If you look at the team that went over to Lenovo from IBM (in 2005), many of them are still in place."
Roger Kay, Endpoint Technologies Associates Technology Analyst
January 23, 2014
http://www.charlotteobserver.com/2014/01/23/4635403/lenovo-to-double-presence-in-nc.html#.UwOLMmJdVNS

The deals put Lenovo "exactly where it wants to be: at the forefront of the computing and smart devices business"… Lenovo "fully embraces the tight margins and tough competition of the global market"… "After many years of rapid growth, and following on its ascendency to the top of the PC business... Lenovo is on a roll."
Ezra Gottheil, TBR Principal Analyst
January 31, 2014
http://www.bizjournals.com/triangle/blog/2014/01/analyst-lenovo-is-on-a-roll.html

"As a firm based in China, we believe Lenovo will have a key trust advantage in the Chinese market that IBM lacked...In addition, Lenovo's business model is better suited for high volume, lower-margin product line."
Josh Olson, Edward Jones Analyst
January 23, 2014
http://www.bizjournals.com/triangle/blog/2014/01/with-ibm-buy-is-lenovo-purchasing-a.html

"Due to the strong IBM client base, Lenovo can enter the top-tier enterprise services market..We think the service business will be Lenovo's major driver in the future."
Tony Yang, BOCI Research Ltd. Analyst
January 23, 2014
http://www.businessweek.com/news/2014-01-23/lenovo-to-buy-ibm-server-unit-for-2-dot-3-billion-amid-pc-slump

"Lenovo are extremely strong as a provider for China and has been trying to break in to the global market. This acquisition is really high-profile and will help Lenovo to gain global success and market share...It will see a lot of positive momentum from cross-selling IBM technology to Lenovo accounts."
Errol Rasit, Gartner Research Director
January 23, 2014
http://www.cnbc.com/id/101352873

"The major question now is whether the deal will clear regulatory approval, including a likely national security review. History suggests it will: Unlike many Chinese companies, Lenovo largely operates by Western standards of transparency and openness. It sells tens of thousands of PCs to federal agencies, and it has been cleared to buy American companies or units of American companies on multiple occasions. The most significant of those was Lenovo's 2005 acquisition of IBM's PC business, a deal that began the transformation of a successful Chinese company into a global powerhouse."
Miguel Helft, Senior Writer, Fortune
January 24, 2014
http://tech.fortune.cnn.com/2014/01/24/why-lenovo-paid-2-3-billion-for-ibms-low-end-server-unit/

"It's fair to say that this deal is more likely to get through CFIUS without major problems than the 2005 transaction...there seemed to be relatively little national security risk in the deal...Lenovo [is] now a fairly well-known corporate citizen compared with 2005."
John Reynolds, Partner, Davis Polk
January 23, 2014
http://www.reuters.com/article/2014/01/23/us-ibm-server-lenovo-idUSBREA0M01U20140123