Lenovo Agrees to Buy IBM's Low-End Server Unit for US$ 2.3 Bln

(Beijing) – Lenovo Group Ltd. is counting on a US$2.3 billion deal for International Business Machine Corp.'s (IBM) low-end server unit to generate US$ 5 billion in revenue every year, says Yang Yuanqing, CEO and chairman of the world's second largest maker of personal computers.

Yang announced the deal to buy the server unit and related services at Lenovo's annual Spring Festival party in the capital on January 23. It comes nearly a decade after Lenovo bought IBM's Think-Pad PC brand.