Lenovo is set to buy a majority stake of Fujitsu's PC business, the two companies announced earlier today.
The agreement has been reached for a price of $269 million for a 51 per cent in the Fujitsu PC arm, Reuters confirmed, following last October's first news of the deal, when the two companies said they were ‘exploring co-operation’ possibilities in their PC business.
Lenovo’s shares rose five per cent after the midday break.
When it comes to payment, Lenovo said it would pay Fujitsu $156.7 million (17.8bn yen) in cash, and another $22 to $112 million by 2020, based on performance.
Earlier that day, Lenovo reported a profit of $139 million for the second quarter which ended in September, down from $157 million it had reported a year ago. The company’s revenue was $11.8 billion, up from $11.2 billion last year.
Its global PC unit shipments had rebounded 17 per cent from the previous quarter, even though the PC market share in the six months fell 0.2 per cent, down to 21 per cent.
Reuters reminds that all PC makers around the globe are “struggling” as consumers increasingly switch to mobile devices for their day-to-day computing needs. Gartner says worldwide shipments of PCs fell 3.6 per cent year-on-year, representing the 12th such decline, in a row.
It was also said that Lenovo is no longer the world’s largest PC maker, falling behind HP earlier in the year.
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