NEW YORK (TheStreet) -- Shares of International Business Machines Corp. (IBM) are up 1.24% to $189.71 following the company's announcement late Friday that it received notice from the Committee on Foreign Investment in the United States (CFIUS) of the successful conclusion of the committee's review of the divestiture of its x86-based server business to Lenovo Group (LNVGY) .
The approval of the $2.3 billion sale to Lenovo enables IBM to focus on system and software innovations in areas such as cognitive computing, Big Data and cloud, and provides clarity and confidence to current x86 customers that they will have a strong partner going forward, IBM said.
Must Read: Warren Buffett's 25 Favorite Stocks
"The parties now look forward to closing the transaction," IBM said in a statement.
Shares of Lenovo are up 1.54% to $30.35
TheStreet Ratings team rates INTL BUSINESS MACHINES CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate INTL BUSINESS MACHINES CORP (IBM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, notable return on equity, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."