Lenovo completes IBM PC acquisition

It's official, Lenovo has completed its acquisition of the IBM PC division.

The deal has now created a new international IT competitor, as well as the third-largest personal computing company in the world.

Under the terms of the transaction, Lenovo has paid IBM $US1.25 billion, comprised of about $US650 million in cash and $US600 million in Lenovo Group shares, with the acquisition effective May 1.

Additionally, Lenovo will assume about $US500 million of net balance sheet liabilities from IBM.

The company has a worldwide staff of 19,000, with the new management team comprising of employees of both companies. Chief executive officer of Lenovo is Stephen Ward, who was previously IBM senior vice president and general manager of IBM's personal systems group.

Lenovo claims it will have combined annual PC revenue of aboaut $US13 billion and volume of some 14 million units.

"We expect to capture synergies starting today through leveraging the complementary nature of Lenovo and PCD's customer bases, product offerings and geographic coverage while utilizing Lenovo's highly sophisticated operating platforms," Ward said.

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