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The purchase price agreed upon is approximately $2 billion. IBM is once again looking to sell off its x86 server business, only this time it has three, not one potential suitors for the business. Lenovo’s pending acquisition of Motorola Mobility from Google will make it the world’s third-largest smartphone maker, while further strengthening its position as a top-three maker of smart connected devices – PCs, tablets and smartphones. Lenovo to buy IBM's x86 server business for $2.3bn. Financial terms of the deal have Lenovo paying IBM approximately $2 billion in cash with the remaining $300 million in Lenovo stock. The transaction is expected to close in most other countries later this year, with the few remaining countries following in early 2015.As described in the January announcement of Lenovo’s acquisition of IBM’s x86 server business, Lenovo and IBM have also established a strategic alliance where Lenovo will serve as an Original Equipment Manufacturer (OEM) to IBM and resell selected products from IBM’s industry-leading storage and software portfolio, including IBM’s entry and midrange Storwize storage product family, Linear Tape Open (LTO) products, and elements of IBM’s system software portfolio, including Smart Cloud, General Parallel File System and Platform Computing solutions. The deal has been an endeavor of negotiating terms and services, and this will continue throughout the following months with plans to finalize and close by the end of this year. In addition to the systems, IBM will also retain the following products: IBM PureApplication® System and IBM PureData™ System appliances, IBM WebSphere® DataPower® SOA appliances, and IBM Internet Security Systems (ISS).With the shift from one OEM to the next, it can be difficult to grasp where to go for answers. Lenovo will continue to drive innovation in these products. Lenovo will pay a portion of $2 billion in cash to IBM and paying the remaining $300 million in Lenovo stockIBM will still have ownership of the system software that supports x86 and IBM Power® server businesses. If you already own x86 servers and have concerns about the maintenance of your equipment, CentricsIT can ease you through transitioning to third-party support. CentricsIT can help alleviate the confusion in this transition phase by cutting out the manufacturers completely. Lenovo will acquire a broad license to these products. IBM will still have ownership of the system software that supports x86 and IBM Power® server businesses. CentricsIT has a huge stock of new and use IBM x86 servers. With these servers being among the most widely used by companies large and small, clients and business partners are left with some burning questions on how this will eventually affect them.
The global team of the IBM x86 server business will be organized under Lenovo’s Enterprise Business Group. Because, frankly, your data center projects can’t wait on OEM decision making.IBM will still focus on its current products that are not involved in this deal with Lenovo and will continue to make investments in their systems and software.Lenovo will obtain IBM System x®, IBM BladeCenter® and IBM Flex System® Servers, x86-based IBM Flex System integrated systems, IBM NeXtScale™ and IBM iDataPlex® servers, along with IBM x86 options system networking switches, and maintenance offerings.