SAN FRANCISCO—China's Lenovo Group Ltd., the world's second largest PC maker, will acquire Brazil's largest PC and consumer electronics vendor in a cash and stock deal worth about $147 million, the company said Wednesday (Sept. 5).
Lenovo said acquiring the company, known as CCE, would more than double its PC market share in Brazil, the world's third-largest PC market. CCE has more than 50 years of history in Brazil, marketing PCs and consumer electronics under brand names such as CCE, CCE Info and CCE Mobi.
Yuanqing Yang, chairman and CEO of Lenovo, said the deal lays the foundation for the company's "PC+ vision," including products like tablets and smartphones.
"CCE is an excellent fit with its four screen product portfolio and a valuable manufacturing base in Brazil," Yang said. "CCE’s management, who will become an essential part of our Brazilian operations, know the Brazilian consumer and will immediately help us establish a strong retail presence."
Under the terms of the deal, Lenovo will pay CCE shareholders approximately 300 million Brazilian reais (about $147 million) cash and stock to acquire 100 percent of CCE. Lenovo said it would retain CCE’s management team, including founder and CEO Roberto Sverner, and said it doesn't anticipate any reduction in workforce after the deal closes. The transaction is expected to close in the first quarter of 2013, Lenovo said.
Sverner said the acquisition by Lenovo would provide a boost to the Brazilian economy, spurring job creation and improving the competitiveness of CCE's products.
CCE manufactures its products in the Free Economic Zone of Manaus in northern Brazil. The company claims to be the largest employer in personal computing and consumer electronics in northern Brazil. Related stories:
January 2016 Cartoon Caption ContestBob's punishment for missing his deadline was to be tied to his chair tantalizingly close to a disconnected cable, with one hand superglued to his desk and another to his chin, while the pages from his wall calendar were slowly torn away.122 comments