This article is more than 1 year old
Lenovo raises $350m for IBM PC takeover
Turns to US private equity
Lenovo has turned to three US private equity funds to back the takeover of IBM’s PC business. China’s biggest PC maker has raised $350m, of which $150m will go towards the acquisition. Working capital will swallow the rest of the money.
Lenovo's breadheads are Texas Pacific Group ($200m), General Atlantic ($100m) and Newbridge Capital ($50m), which will hold 12.4 per cent of the enlarged company, assuming conversion of preference shares and warrants into common stock.
Lenovo must pay IBM $800m cash and shares worth $450m to close the acquisition, following which IBM will hold 13.4 per cent of the company, also assuming full conversion of preference shares. IBM will continue to supply leasing, financing, warranty and maintenance services to Lenovo. ®
Related link
Related stories
IBM Germany will be Lenovo from May
US OKs IBM PC deal
Spy fears spook IBM-Lenovo deal
IBM-Lenovo deal to face US govt. probe
US hints at IBM-Lenovo deal spy fears
IBM's Mr Thinkpad on life before Lenovo
IBM hands Lenovo billion-dollar PC loser
Biting the hand that feeds IT
