Lenovo to acquire IBM's server biz for $2.3 b

Lenovo and IBM have entered into an agreement in which Lenovo plans to acquire IBM’s x86 server business for $2.3 billion, out of which $2 billion will be paid in cash and the balance in Lenovo stock. This includes System x, BladeCenter and Flex System blade servers and switches, x86-based Flex integrated systems, NeXtScale and iDataPlex servers and associated software, networking and maintenance operations.

IBM will retain its System z mainframes, Power Systems, Storage Systems, Power-based Flex servers, and PureApplication and PureData appliances.

 The agreement builds upon a longstanding collaboration that began in 2005 when Lenovo acquired IBM’s PC business, which included the ThinkPad line of PCs. In the period since, the companies have continued to collaborate in many areas.

 IBM will continue to develop and evolve its Windows and Linux software portfolio for the x86 platform.  IBM is a leading developer of software products for x86 servers with thousands of products and tens of thousands of software developer and services professionals who build software for x86 systems.

 Approximately 7,500 IBM employees around the world, including those based at major locations such as Raleigh, Shanghai, Shenzhen and Taipei, are expected to be offered employment by Lenovo.

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