NEW DELHI: Chinese PC maker Lenovo said that conditions for its acquisition of about $2.1 billion IBM's x86 server business have been satisfied and both the parties anticipate they will begin closing the transaction effective on October 1.

The acquisition will make Lenovo the third-largest player in the $42.1 billion global x86 server market.

IBM will retain its System z mainframes, Power Systems, Storage Systems, Power-based Flex servers, PureApplication and PureData appliances.

"With the close of the x86 acquisition, Lenovo will add a world-class business, immediately making us a strong number three in the global server market," Chairman and CEO of Lenovo Yang Yuanqing said in a statement.

In 2005 Lenovo had acquired IBM's PC business, including the ThinkPad line of PCs.

"India has always been a critical market for Lenovo. Since we acquired IBM's PC business, our India growth has evolved significantly and we hope to repeat the same success with the x86 acquisition," Lenovo India Managing Director Amar Babu said.

Out of about $2.1 billion, approximately $1.8 billion will be paid in cash at closing after estimated adjustments and approximately $280 million will be paid in Lenovo stock, based on the closing price of Lenovo's stock on September 26, 2014.

The transaction satisfied regulatory requirements and conditions, including clearance by the Committee on Foreign Investment in the United States (CFIUS), the European Commission and the Chinese Ministry of Commerce.

The transition will begin Wednesday in countries that are part of the initial closing, which includes most major markets. The transaction is expected to close in most other countries later this year, with the few remaining countries following in early 2015.

Lenovo is also in process to acquire Motorola Mobility from Google which will make it the world's third-largest smartphone maker, the statement said.
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