International Business Machines Corp. (NYSE:IBM) announced that its $2.3 billion deal with Lenovo Group Limited (OTCMKTS:LNVGY) received regulatory approval in the United States.
The Committee on Foreign Investmemt in the United States (CGIUS) sent a notice to International Business Machines Corp. (NYSE:IBM) indicating that its evaluation regarding the sale of x86-based server business to Lenovo Group Limited (OTCMKTS:LNVGY) was completed, and the transaction was approved.
In a statement, International Business Machines Corp. (NYSE:IBM) said the approval is a good news, and the companies are now looking forward to close the transaction.
The multinational technology and consulting company also said that the approval enables it to focus on system and software innovations that would bring new kinds of value to clients in different areas such as cognitive computing, big dat and cloud. It also provides clarity and confidence to existing x86 customers that theuy will have a strong partner going forward.
Last month, International Business Machines Corp. (NYSE:IBM) partnered with Apple Inc. (NASDAQ:AAPL) to transform the enterprise mobility by bringing a new class of business apps to the iPhone and iPad. The companies said the partnership aims to redefine how enterprises accomplish their work, address the main challenges confronting the mobile industry and start a true mobile-led business change.
Following the announcement of the partnership agreement betweel Apple and IBM, the stock price of BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) went down over concerns that it would directly affect its core enterprise client base. However, BlackBerry CEO John Chen said the deal is no threat. He said BlackBerry’s enterprise and services would bring the company back to growth and profitability going forward.
In June, it had beenreported that International Business Machines Corp. (NYSE:IBM) is close to reaching an agreement to sell its chip manufacturing business to Globalfoundries. The multinational technology and consulting company had been disposing its assets that are less profitable to meet its $20 earnings per share (EPS) target for 2015. A source stated that IBM is suffering as much as $1.5 billion in losses from its chip manufacturing business.
Early this year, IBM Chairman and CEO Ginni Rommetty said the company failed to meet its 2013 EPS target. The company decided to cut jobs in the United States to be able to meet its EPS target for 2015.