Lenovo Group Limited, the leading personal computer brand in China and across Asia, and IBM announced a definitive agreement under which Lenovo will acquire IBM’s personal computing division to form the world’s third largest PC business, bringing IBM’s leading enterprise-class PC technologies to the consumer market and giving Lenovo a global market reach beyond China and Asia.

Lenovo will have a combined annual PC revenue of approximately $12 billion and volume of 11.9 million units, based on 2003 business results — a fourfold increase in Lenovo’s current PC business. Lenovo’s new PC business will benefit from a powerful worldwide distribution and sales network covering 160 countries, global brand recognition through the combination of IBM’s highly regarded “Think” brand notebook franchise and Lenovo’s leading brand recognition in China, enhanced service and support for consumers and enterprise clients, and consumer strength and market leadership in China, the world’s fastest growing IT market.
As part of the transaction, Lenovo and IBM will enter a broad-based, strategic alliance in which IBM will be the preferred services and customer-financing provider to Lenovo.
Lenovo will be the preferred supplier of PCs to IBM, enabling IBM to offer a full range of personal computing solutions to its enterprise and small- and medium-business clients. <