Lenovo to Acquire Mobile Handset Business

Lenovo-logoLenovo Group  announced that it is acquiring the entire interest of Lenovo Mobile Communication Technology Ltd. from a group of investors led by Hony Capital, the private equity arm of Legend Holdings. Consideration of the acquisition is approximately US$200 million in cash and Lenovo shares. The announcement signals that Lenovo is gearing up its efforts in the burgeoning mobile Internet market in China. Lenovo Mobile now ranks No.3 in China’s mobile handset market and is the No.1 domestic brand. The transaction is conditional upon Lenovo independent shareholder approval.

Convergence between the personal computing and mobile handset industry has been a key technology trend over the past several years worldwide. The two technologies today provide very different user experiences that are evolving and combining to create new generations of devices, applications and Internet services. In addition, China is entering a high growth phase. Driven by the government and telecom service carriers, the demand for mobile Internet devices has created a huge market.

Industry analysts project the China mobile Internet market will grow to exceed US$16 billion by 2014, fueled by the rapid evolution of 3G mobile broadband and accompanying multimedia Internet services.

As a global leader in IT industry, Lenovo has been following the business opportunity in the fast growing mobile Internet market. With this acquisition, Lenovo aims to maximize the combined synergies of the two companies in product innovation, lean manufacturing, strong distribution channels and retail presence to lead the market for new mobile handheld devices in China.

Yang Yuanqing, CEO of Lenovo Group, said: “As Lenovo’s global PC business continues to make steady progress, we view mobile Internet as a key growth opportunity moving forward globally. Lenovo has prepared itself in this area. We have developed first class products with excellent hardware and operating systems integration. We will launch these innovative new products in China soon. With enovo’s brand, strong channel and excellent operation platform, we’re confident in our ability to execute our mobile Internet strategy and make it our next growth engine after the China business.”

Lenovo Mobile has an experienced and successful leadership team in the China mobile industry, healthy financial performance, an extensive channel network, and good relationships with domestic telecom carriers in China.

Source: Lenovo

Related posts

White Nokia Lumia 900 available globally

Nokia has announced that the white version of the Lumia 900 smartphone will not be restricted to certain markets only – instead it will be available globally. Earlier this month the Finnish communications giant erroneously leaked a picture of the white Lumia 900, which was included with...

JVC introduce GY-HM790, new flagship ProHD camcorder

JVC Professional Products, a division of JVC U.S.A., will introduce the new flagship of its ProHD camcorder line, the GY-HM790, at the 2010 NAB Show in Las Vegas, Nev., April 12-15 (Booth C4314). With an innovative modular design and a full complement of accessories, the new camera supports...

8K resolution TV sets show up at CES 2014

8K resolution TV sets show up at CES 2014

Did you think that the 4K resolution was the best in the world? Then think again. The on-going CES 2014 has become the stage for a really strange event that has surprised most people around the world – namely some tech companies such as Samsung, Philips, Sharp and a few others have showcased...

Leave a comment