Lenovo will close IBM x86 server business deal tomorrow

Lenovo's acquisition of IBM's x86 server business will be complete tomorrow (1 October), offering enterprise customers greater flexibility.

Lenovo will take over IBM's BladeCenter and Flex System blade servers and switches, x86-based Flex integrated systems, NeXtScale and iDataPlex servers and associated software, blade networking and maintenance operations.

The 7,500 employees that work within the x86 unit across the globe will also make the move to Lenovo's Enterprise Business Group headed up by ex-IBM executive Adalio Sanchez.

The acquisition will allow Lenovo to spread its reach beyond consumer applications and PCs, where the company has traditionally become known, according to Gerry Smith, executive vice president of Lenovo Group and president of the Enterprise Business Group and Americas Group.

The company's acquisition of Motorola Mobility from Google is also part of these expansion plans, endeavouring to capture every market sector.

Yang Yuanqing, chairman and CEO of Lenovo,added: "With the close of the x86 acquisition, Lenovo will add a world-class business that extends our capabilities in enterprise hardware and services, immediately making us a strong number three in the global server market.

"Now, our priorities are to ensure a smooth integration and deliver a seamless transition for customers. By combining Lenovo's global reach, efficiency and operational excellence with IBM's legendary quality, innovation and service, I am confident that we will have competitive advantages to help us drive profitable growth and build Lenovo into a global enterprise leader."

As previously agreed, IBM will continue to provide maintenance services to existing System X customers to ensure the transition between IBM and Lenovo is seamless.

IBM and Lenovo announced the acquisition in January this year following its purchase of IBM's PC business in 2005.

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