Lenovo, which plans to finalize the acquisition of IBM’s x86 server business this week, has paid $200 million less for the acquisition. The acquisition amount was revised downwards after Lenovo reassessed the server division’s value.
In January, Lenovo wanted to pay 2.3 billion dollars, converted 1.81 billion euros, for the x86 server branch of IBM. That amount has now been reduced to 2.1 billion dollars, or 1.65 billion euros, Reuters reports. Lenovo would have given the acquired department a lower value after a new inventory. The acquisition will be officially completed on Wednesday.
Lenovo surpassed competitor HP last year as the largest computer manufacturer, but the Chinese company also wants to focus on the market for x86 servers, partly due to the shrinking PC sales. Currently, the company sells relatively inexpensive low-end ThinkServer servers, but with the purchase of IBM’s x86 server arm, which is said to be profitable, Lenovo hopes to sell more powerful and profitable hardware to large and medium-sized enterprises. Lenovo will have access to systems such as System x, BladeCenters, the Flex System blade servers and switches, the NeXtScale and iDataPlex, and all associated software and services.
Analysts say the takeover of IBM’s x86 server division has been completed relatively quickly, despite tensions between China and the US that could cause regulators to throw a spanner in the works. It is not the only ‘American’ acquisition that Lenovo is working on: it also wants to take over smartphone maker Motorola from Google.