IBM has finally managed to sell its low-margin server business to the world’s largest PC maker Lenovo. The two companies have been negotiating this deal for past few years, and a potential sale fell off last year when Lenovo did not agree to pay what IBM wanted — $6 billion.
Now, Lenovo has informed the Hong Kong Stock exchange that it will pay $2.07 billion in cash to IBM for buying its server unit.
This is the second time IBM has managed to get rid of a low-end hardware business by selling it off to Lenovo. In 2005, IBM sold its ThinkPad PC business to Lenovo for $1.75 billion.
IBM’s revenue from server business have been declining for past seven quarters, forcing the company to act fast and get rid of the unit.
Globally, some of the biggest enterprises including Facebook and Google are increasingly turning to stripped-down versions…
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