Lenovo-IBM Server Deal Gets Regulatory Approval in U.S.

Pulkit Chandna

Lenovo’s server division set for sevenfold increase in global market share

Lenovo’s $2.3 billion acquisition of IBM’s x86-based server business has been given the green light by the Committee on Foreign Investment in the United States (CFIUS) , IBM announced in a press release Friday. All eyes had been on CFIUS, a U.S. government inter-agency body responsible for assessing security implications of such foreign investments, after the deal received the necessary regulatory approval in China last month.

“IBM today is pleased to announce it has received notice from the Committee on Foreign Investment in the United States (CFIUS) of the successful conclusion of the committee’s review of the divestiture of its x86-based server business to Lenovo,” the company said in its press release. “The clearance by CFIUS of this transaction is good news for both IBM and Lenovo, and for our customers and employees. The parties now look forward to closing the transaction.”

Both companies have every reason to be pleased as it must’ve been quite tough for them to allay security-related fears of U.S. government officials — IBM supplies servers to a number of high-profile customers, including some government agencies and telcos — at a time when the two countries are busy trading accusations of cyber espionage.

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