Lenovo seriously considers buying IBM’s low-end server unit, as the division continues to dwindle in value.
Unnamed sources close to the matter are reporting that China-based Lenovo Group Ltd is resuming its discussion with International Business Machines Corps to take over IBM’s low-end server unit.
The deal, according to Bloomberg, may be finalized in the next few weeks. Lenovo CEO Yang Yuanqing said in a recent filing that Lenovo and IBM were discussing the matter, but did not comment on how soon or how much his company will pay for the server division.
“The company has not entered into any definitive agreement in relation to the potential acquisition,” Lenovo’s chief said on Tuesday.
Lenovo reportedly placed a $2.5 billion price tag on IBM’s low-end server unit last year. Since then, however, according to the Wall Street Journal, Dell has also thrown in its bid for a piece of IBM’s dying business.