Lenovo acquires IBM’s x86 server division

Lenovo has acquired IBM’s server branch for x86 systems for 1.7 billion euros. It concerns the branch that made the System x systems, BladeCenters and Flex System blade, among other things. Production of System z mainframes will remain with IBM.

There were rumors early this week that IBM had restocked its lower-cost server branch and that Dell was interested, while Lenovo’s interest in the x86 division was already reported last year. Lenovo has now confirmed the acquisition. Lenovo and IBM are no strangers to each other; In 2005, Lenovo took over the PC branch of IBM, which gave the Chinese company the ThinkPad line, among other things.

Lenovo will now have access to systems such as System x, BladeCenters, the Flex System blade servers and switches, the NeXtScale and iDataPlex, and all associated software and services. Servers based on IBM’s proprietary PowerPC architecture will remain part of the group, such as Flex systems with PowerPC chips. The System z mainframes will also remain part of IBM, as will PureApplication and PureData.

About 7,500 IBM employees will move to Lenovo as part of the deal. The two parties will also work closely together in the field of storage. Although IBM and Lenovo have reached an agreement on the acquisition, it still has to be approved by the US and Chinese authorities.