Reginal Thomas
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IBM Sells It Low End Server Business To Lenovo for $2.3 Billion

IBM has agreed to sell its server business to the Beijing based computer maker Lenovo Group Ltd. for $2.3 billion. In the deal Lenovo will pay IBM $2 billion in cash and the rest will come in the form of shares of the company. The deal still has to face regulatory approval. Earlier this week IBM reported its seventh straight quarter of declining revenue, the company has faced shrinking computer hardware demand. The company will continue to sell a range of high end servers and mainframes, but offloading their x86 division will remove a low margin business of their books. IBM CEO Ginni Rometty is turning the main focus of the company to software and services instead of hardware.