Report: Lenovo Likely to Purchase Server Division of IBM

20 Jan

Chinese PC maker Lenovo is currently in talks with International Business Machines Corp. (IBM) to purchase its x86 server hardware business, and an agreement could be reached as early as February, an anonymous source told Businessweek.

Lenovo’s acquisition plan, driven in part by its desire to strengthen its leverage in the PC and server markets, is likely to benefit IBM tremendously as it seeks to rid itself of unprofitable margins and “focus on software and services,” Businessweek notes.

However, an official confirmation has yet to be released by either side; Representatives from Lenovo declined to address the reports directly, whereas IBM’s Shanghai-based spokes person, Anthony Guerrieri, informed Businessweek that the company “does not comment on rumors and speculations.”