Mainland computer giant Lenovo Group has completed the acquisition of IBM's personal computer division, creating the world's third-largest personal computing company, it announced yesterday.
Lenovo paid IBM US$1.25 billion, consisting of US$650 million in cash and US$600 million in Lenovo shares, as well as assuming US$500 million of net balance sheet liabilities from IBM.
IBM now owns 18.9 per cent of Lenovo and will record a pretax gain on the sale of US$1 billion, which will appear in its second-quarter results.
With the completion of the transaction, Yang Yuanqing was named chairman of Lenovo immediately, replacing founder Liu Chuanzhi who has become a non-executive director.
'The closing of this transaction is an historic event for Lenovo and marks a new era for the global [personal computer] industry,' Mr Yang said in a statement. 'The new Lenovo strategy is based on what our customers want: high-quality products and world-class service.'
Stephen Ward, a former IBM senior vice-president and general manager of IBM's Personal Systems Group, is the new chief executive of Lenovo. Mr Ward said the company would introduce new products 'within weeks'.
