International Business Machines (IBM.NYSE) agreed to sell its low-end server business for US$2.3 billion to China’s leading PC maker Lenovo (0992.HKG), Bloomberg reported. The deal will decrease the New York-based tech giant’s reliance on computer hardware as sales of the products plunge. The two companies said in a statement on Thursday that the deal price includes about US$2 billion of cash, with the rest coming in shares of Beijing-based Lenovo. The transaction now faces regulatory scrutiny, including a likely national-security review that could slow or scuttle the purchase.
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