MANHASSET, N.Y. The proposed acquisition of IBM's PC business by China-based PC maker Lenovo passed another hurdle Wednesday (March 9) as the Committee on Foreign Investment in the U.S. (CFIUS) cleared the deal.
IBM announced the sale of its Personal Computer division to Lenovo in December for $1.75 billion. The deal would create the world's third largest PC maker with roughly $12 billion in revenue.
However, concerns arose that China could use IBM's PC plants in North Carolina as a spy base, prompting a review by the CFIUS.
The deal also became the target of U.S. lawmakers unhappy with the loss of a U.S.-based PC maker to China.
"With the review by the U.S. government complete, IBM and Lenovo are moving quickly to integrate the two companies and expect to finalize the transaction in the second quarter, as planned, while continuing to provide customers with world-class PC products and services." said Steve Ward, general manager of IBM's Personal Systems Group, who will serve as Lenovo's chief executive.
As part of the alliance between IBM and Lenovo, IBM will provide sales support and demand generation services for Lenovo products through IBM's existing enterprise sales force and through IBM.com. Lenovo products will also be sold through IBM PC specialists who will join Lenovo.
IBM Global Financing and IBM Global Services will become preferred providers to Lenovo for leasing and financing services, and for warranty and maintenance services, respectively.