8 December 2004 – Armonk (NY): Yesterday’s reports that IBM is to sell a majority stake of its PC business to China’s biggest computer maker Lenovo have been officially confirmed.
The deal, which is worth $1.75 billion, will see IBM retain an 18.9 per cent share of the newly-merged company. About 9,500 IBM staff will become employees of the new venture, doubling Lenovo’s existing workforce.
Stephen Ward, SVP and general manager of IBM’s Personal Systems Group, will serve as the CEO of Lenovo following completion of the transaction. Yuanqing Yang, currently vice chairman and President/CEO of Lenovo, will serve as the chairman of Lenovo after the transaction.
Commenting on the deal, IBM SVP John Joyce said: "The IBM brand will gain great recognition in China, the world’s fastest growing economy and the world’s fastest growing market for PCs.
"For employees, this represents an opportunity to join a vibrant and growing company, and for investors this agreement represents an opportunity to reap the rewards of a growing company in a growing market."