Lenovo Inc has confirmed that it is buying a majority stake in the Fujitsu’s PC business for up to $269 million. This step is part of the company planning to broaden its range in the PC market.
Lenovo had recently posted a profit of $139 million for the second quarter which is a taxation gain of $118 million helping earnings beat a consensus of $44 million.
With the amount of good profit Lenovo reported it has decided to buy a majority stake of 51% percent of Fujitsu’s PC business.
Lenovo is expected to pay 17.85 billion yen ($156.70 million) in cash and 2.55 billion based on performance to 2020. This would yield Lenovo to a 51% stake in Fujitsu Client Computing Ltd.
Lenovo Chief Executive Yang Yuanging said PC is still core of Lenovo and is still a very decent market and the commercial customers will still use PC. The company has been struggling a bit with its Mobile business despite acquiring Motorola from Google in 2014.
Lenovo is basically known for its PCs and Laptop but lost the number one position to HP Inc. Buying a stake in Fujitsu’s PC biz might help Lenovo is taking back the throne which was ruled by the company for years until HP took it from them.