Lenovo to Purchase Share in Medion AG

From DailyTech: Lenovo, one of the biggest computer makers in the world, has announced that it offered to purchase German computer maker Medion AG. The deal is valued at $672 million reports WRAL and is the largest purchase Lenovo has made since it acquired IBM's PC business years ago.

Lenovo is buying a 37% stake from the chairman of Medion for 231 million Euros amounting to 13 euro per share and will extend the same offer to the remaining shareholders. The price that Lenovo has offered is 18% higher than the last closing price of the company stock.

“This agreement represents another bold move for Lenovo to realize its long-term strategy. It will complement both Lenovo's core PC business and new businesses which are key areas for development.” said Yang Yuanqing, Lenovo Chief Executive Officer.

“With their strong consumer sales, marketing, services and retail capabilities, MEDION AG’s business is perfectly aligned with our consumer growth strategy in Western Europe. Bringing together this ‘front end’ with Lenovo’s ‘back end’ manufacturing capability and supply chain will make both companies even more successful and competitive. Together, we can build a complete, end-to-end consumer platform that will both accelerate our PC business and give us the capabilities, expertise and relationships needed to win in the mobile Internet space.”

Lenovo says that the purchase will get it more than a 14% share in the German PC market, which is the largest PC market in Europe. The purchase will also help to save money for the combined firms by utilizing improved supply chains.

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