CHINA: LENOVO TO ACQUIRE 51% OF FUJITSU AT $224 MILLIONS - CALIPHATE MEDIA

Breaking News

Post Top Ad

Post Top Ad

Monday, 6 November 2017

CHINA: LENOVO TO ACQUIRE 51% OF FUJITSU AT $224 MILLIONS



Image result for lenovo

          Lenovo Group Ltd has announced that it will spend $224 million to acquire a 51 percent stake in Japanese technology firm Fujitsu Ltd's PC business. This will be done with the hope of boosting Lenovo margins and recapture the top slot in global PC.

The combined market share of Lenovo (21.6 percent) and Fujitsu (about 4 percent) is bigger than HP which holds about 22.8 percent, according to data from market research company International Data Corp.
And this acquisition will make the Hong Kong stock exchange listed company to get back to the top after losing it to HP
The deal also came close on the heels of the company announcing its strongest revenue jump in two years, thanks in part to the faster-than-average growth of its PC business.
Hong Kong-listed Lenovo said in a filing that it would pay for the stake in Fujitsu Client Computing Ltd with 17.85 billion yen ($156.70 million) in cash and the remaining based on performance to 2020. The two sides will also set up a joint venture that will integrate Fujitsu's client resources, manufacturing, research and development capabilities with Lenovo's global presence.

Lenovo said it posted a 5 percent year-on-year jump in revenue to $11.8 billion for the quarter that ended in September. The performance surpassed analysts' projections for $11.3 billion and marked the biggest rise since the same period of 2015, according to data compiled by Bloomberg.
Yang Yuanqing, chairman of Lenovo, said in a statement that "While sustaining a leading profit level, our PC business has performed better than the average. By boosting marketing and sales capabilities, the data center business is also being effectively reconstructed."
Lenovo has been struggling to revive momentum in personal computers, smartphones and server businesses amid mounting competition from both domestic peers and foreign rivals.
Jacky Zhao, an analyst at IDC, said the Fujitsu deal will contribute to Lenovo's long-term development, as it is trying to team up with all possible partners amid the continued downtrend in the PC market.
"Setting up joint ventures is an effective way to survive the cold winter. It can give Lenovo more resources to revive its business when demand begins to pick up," Zhao said, adding the commercial and consumer PC market is already showing signs of recovery.

Lenovo also said in July, 2016, that it would spend $195 million to increase its stake in its PC joint venture with another Japanese firm NEC Corp.
When it comes to the smartphone business, where Lenovo is facing mounting pressure from rivals such as Huawei Technologies Co Ltd, the company said the turnaround is still in progress.
In the quarter ended in September, it sold 15.3 million units of smartphones globally, up 10 percent year-on-year, with good performances especially in Latin America and Western Europe.

ABOUT LENOVO
 Image result for lenovo

Lenovo PC International, is a Chinese multinational technology company with headquarters in Beijing, China and Morrisville, North Carolina. It designs, develops, manufactures and sells personal computers, tablet computers, smartphones, workstations, servers, electronic storage devices, IT management software, and smart televisions. Since 2013, Lenovo is the world's largest pc by unit sales but was toppled by HP last year. It markets the ThinkPad line of notebook computers, IdeaPad and Yoga lines of notebook laptops, and the IdeaCentre and ThinkCentre lines of desktops.

ABOUT FUJITSU

 Image result for Fujitsu

Futjitsu is a Tokyo based Japanese multinational information technology equipment and services company. In 2015, it was the world's fourth-largest IT services provider measured by IT services revenue.


Fujitsu chiefly makes computing products, but the company and its subsidiaries also offer a diversity of products and services in the areas of personal computing, enterprise computing, including x86, SPARC and mainframe server products, as well as storage products, telecommunications, advanced microelectronics, and air conditioning

No comments:

Post a Comment

Leave A Comment

Post Top Ad