Lenovo Group's acquisition of IBM's PC unit has been completed ahead of schedule.
With the completion of the U$1.75 billion deal - expected to happen before the end of the second quarter on June 30 - Lenovo has become a much larger company and more than quadrupled its annual revenue. The company, which had just under $3 billion in annual revenue before the acquisition, now has annual revenue of around $13 billion and is the world's third-largest PC vendor, behind Dell and HP.
Lenovo is promising immediate results. In a statement, the company said it expects to see lower procurement and marketing costs. Lenovo also promised a wave of new product introductions to come in the coming weeks. Those announcements could include the introduction of Lenovo-brand products into markets outside China.
Chinese trade expands
Prior to the acquisition, very few of Lenovo's products were sold outside mainland China.
The company has published information on its US Web site for a Lenovo-brand consumer desktop, notebook and a smart phone based on software from Microsoft.
With the completion of the deal, Lenovo has officially moved its headquarters from Beijing, where the company was established as a spin-off from the Chinese Academy of Sciences, to Purchase, New York.
Lenovo announced IBM has named Henry Chow, the general manager of IBM China, and Robert Moffat Jr., an IBM senior vice president, as its representatives on Lenovo's board of directors. Both Chow and Moffat will act as non-voting observers, according to Lenovo.