IBM and China's Lenovo Group confirmed what was the world's worst secret shortly before 9 pm EDT today. Lenovo Group Ltd. is buying IBM's personal computer business for $1.2-billion (U.S.) in cash. IBM will continue to hold a stake worth just under 20 per cent in the business. Just like that, though, Lenovo is now number three in the world when it comes to computer makers, behind Dell (1) and Hewlett-Packard (2).
The new company will have its headquarters in New York but have principal operations in Raleigh, N.C. and in Beijing.
A top IBM exec, Stephen Ward, will stay with this new venture as CEO.