Lenovo Buys IBM's Server Segment, Expansion Outside PC Next

Lenovo Group has received U.S. and European approvals to complete its acquisition of IBM's low-end server segment and plans to use it to grow faster outside its personal computer business. The $2.1 billion deal is due to close on Wednesday. Lenovo, which bought IBM's PC unit in 2005, has carried out a flurry of acquisitions and launched initiatives including creating a smartphone brand. This year, Lenovo also bought the Motorola Mobility smartphone business from Google for $2.9 billion. Lenovo has said the IBM acquisition will propel it from a number nine ranking among server manufacturers to number three, just behind Hewlett Packard and Dell.