Lenovo to Buy IBM Server Business
January 23, 2014

Lenovo to Buy IBM Server Business

This is not the first relationship between the two companies. In 2005, Lenovo bought IBM's ThinkPad business for $1.75 billion.

The sale, which still requires US government approval, reportedly would increase Lenovo's market share in the server market from 2 to 1 percent.  

The deal is for the lower-end server business, which produces low-cost x86 servers. IBM will still maintain is higher-end server system. Reports are that IBM will keep developing software and applications for the x86 platform, as the company continues to focus on software, apps, and similar business.