Lenovo To Buy Ibm’s Low-end Server Unit For $2.3 Billion

People stand under a sign showing the Lenovo company at a computer market in Shanghai January 21, 2014. REUTERS/Aly Song

The unit posted a loss of $26.4 million after tax for the 12 months ended December 31, compared with a profit of $187 million in the 12 months ended March 2013. The x86 unit has annual revenue of $4.6 billion. Talks between IBM and Lenovo fell apart last year due to differences over pricing, with media reports at the time suggesting IBM wanted as much as $6 billion for the unit. Analysts said the sale may have been accelerated by IBM’s problems in China following revelations of U.S. electronic spying and ongoing weakness in hardware sales. The world’s biggest technology services company posted a 23 percent drop in fourth-quarter revenue from China.

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