IBM and Lenovo have announced that, as of August 15, 2014, the Committee on Foreign Investment in the United States (CFIUS) has approved the divestiture of the x86-based server business to Lenovo. This is a major milestone for the agreement, passing U.S. Government review around national security interests.
Lenovo issued the following statement on their IBM System x Server Business Transaction site:
“Lenovo Statement On US Government Clearance Of IBM X86 Acquisition – August 15, 2014
Lenovo can confirm reports that CFIUS has cleared its transaction to acquire IBM’s x86 server business and the companies have completed the regulatory process in the United States. As we have stated consistently for both the x86 and Motorola Mobility acquisitions, we continue to work through a number of regulatory and business processes to ensure an effective and timely closure on both deals. We remain on track to close both deals by the end of the year. Out of respect for the confidentiality of the process, we will not have any further comment until we have met all conditions for closure.”
An IBM press release offers more detail: “IBM Issues Statement on U.S. Government Regulatory Approval of x86-Based Server Divestiture to Lenovo”
Additional information can be found in the Wall Street Journal article, “IBM Server Sale to Lenovo Passes U.S. Test“.
And, Bloomberg Businessweek added perspective including reassurance around the IBM maintenance aspect, “The companies were able to head off a lot of government concerns on the x86 deal because IBM has agreed to continue maintenance on existing servers for five years.”
For ongoing updates and resources surrounding the IBM-Lenovo x86 server business transition, please visit Datatrend’s IBM-Lenovo x86 Server Business Transition hub.