Lenovo says $2.1 billion IBM x86 server deal to close Wednesday

29th September 2014; Reuters reports that the acquisition of IBM’s x86 server business by Infrasys partner Lenovo will be confirmed this week

In an interview, Lenovo Chief Executive Yang Yuanqing said the IBM deal opened a new “growth engine” for his company. He said he expected the x86 unit to bring in $5 billion in its first year and deliver margins higher than the 4 percent of Lenovo’s PC business.

“In the large and medium enterprise space we can now fully leverage IBM tetechnology to compete with brands like HP and Dell,” Yang said by telephone. “We can combine this good technology with Lenovo’s efficient operations.”

IBM’s x86 server business has trailed those of HP and Dell Inc in market share. But Yang said Lenovo has expertise competing in markets with razor-thin margins, gained during its journey to becoming the world’s largest PC maker.

Infrasys supply the full range of Lenovo and IBM x86 servers.

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