China’s Lenovo to Buy IBM Server Unit for $2.3 Billion amid Slump

China’s Lenovo to Buy IBM Server Unit for $2.3 Billion amid Slump (Bloomberg)

International Business Machines Corp. (IBM) agreed to sell its low-end server business for $2.3 billion to China’s Lenovo Group Ltd. (992) as a way to decrease its reliance on computer hardware. The price includes about $2 billion of cash, with the rest coming in shares of Beijing-based Lenovo, the two companies announced today. The transaction will face regulatory review, including likely national-security questions, that could slow or scuttle the purchase. The sale announcement comes in the wake of IBM reporting its seventh straight quarter of declining revenue this week, with a shrinking computer-hardware business hurting results yet again.

Paul Dykewicz

Paul Dykewicz is the editor of StockInvestor.com and the editorial director of Eagle Financial Publications in Washington, D.C. He writes and edits for the website, as well as edits investment newsletters, time-sensitive trading alerts and other reports published by Eagle. He also is an accomplished, award-winning journalist who has written for Dow Jones, USA Today and other publications, as well as served as business editor of a daily newspaper in Baltimore. In addition, Paul is the author of the inspirational book, "Holy Smokes! Golden Guidance from Notre Dame's Championship Chaplain." He received his MBA in finance from Johns Hopkins University, where he was a two-time president of the school's Finance Club. In addition, Paul has a bachelor's degree from the University of Michigan and a master's degree in journalism from Michigan State University. Outside of work, Paul volunteers with a faith-based organization to assist the poor in Southeast Washington, D.C., to learn personal finance skills to lift themselves out of debt.