The Channel logo

News

By | Team Register 31st March 2005 07:24

Lenovo raises $350m for IBM PC takeover

Turns to US private equity

Lenovo has turned to three US private equity funds to back the takeover of IBM’s PC business. China’s biggest PC maker has raised $350m, of which $150m will go towards the acquisition. Working capital will swallow the rest of the money.

Lenovo's breadheads are Texas Pacific Group ($200m), General Atlantic ($100m) and Newbridge Capital ($50m), which will hold 12.4 per cent of the enlarged company, assuming conversion of preference shares and warrants into common stock.

Lenovo must pay IBM $800m cash and shares worth $450m to close the acquisition, following which IBM will hold 13.4 per cent of the company, also assuming full conversion of preference shares. IBM will continue to supply leasing, financing, warranty and maintenance services to Lenovo. ®

Related link

Lenovo press release

Related stories

IBM Germany will be Lenovo from May
US OKs IBM PC deal
Spy fears spook IBM-Lenovo deal
IBM-Lenovo deal to face US govt. probe
US hints at IBM-Lenovo deal spy fears
IBM's Mr Thinkpad on life before Lenovo
IBM hands Lenovo billion-dollar PC loser

alert Send corrections

Opinion

Chris Mellor

How long before Blue Big HQ pulls the plug on the whole thing?

Chris Mellor

Drives nails forged with Red Hat iron into VCE's coffin
Sleep Cycle iOS app screenshot

Trevor Pott

Forget big-spending globo biz: it's about the consumer... and he's desperate for a nap

Features

Windows 8.1 Update  Storeapps Taskbar
Chinese Buffet self-service
Chopping down the phone tree to scrump low-hanging fruit
An original member of the System/360 family announced in 1964, the Model 50 was the most powerful unit in the medium price range.
Big Blue's big $5bn bet adjusted, modified, reduced, back for more
Microsoft CEO Satya Nadella
Redmond needs to discover the mathematics of trust