US regulator CFIUS approves IBM's $2.3-bn sale of server business to Lenovo
16 Aug 2014
IBM today said US regulators had approved the $2.3-billion deal to sell its server business to Chinese PC maker Lenovo.
In January this year Lenovo succeeded in finalising a deal to acquire IBM's x86 server hardware business (See: Lenovo Group to buy IBM's server business for $2.3 billion) nearly a year after both companies first discussed the deal, which could not materialise as the two companies differed on the valuation.
IBM said in today's statement, "IBM is pleased to announce it has received notice from the Committee on Foreign Investment in the United States (CFIUS) of the successful conclusion of the committee's review of the divestiture of its x86-based server business to Lenovo."
CFIUS is tasked with reviews and approvals of acquisitions of US businesses which could have national security implications.
It said, "The clearance by CFIUS of this transaction is good news for both IBM and Lenovo, and for our customers and employees. The parties now look forward to closing the transaction."
IBM also said the approval of the sale to Lenovo enables IBM to focus on system and software innovations "that bring new kinds of value to IBM clients in areas such as cognitive computing, Big Data and cloud, and provides clarity and confidence to current x86 customers that they will have a strong partner going forward."
In 2005, IBM divested its entire PC business to Lenovo, which has since become the world's largest PC maker.
