Lenovo to buy back mobile phone business

By siliconindia   |   Monday, 30 November 2009, 15:00 IST   |    2 Comments
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Lenovo to buy back mobile phone business
Beijing: Personal computer maker Lenovo Group will be joining the race to develop products that link phones and PCs by buying back a mobile phone business that it sold last year. Lenovo, sold its mobile unit to focus on computers but said that the technologies are now converging, creating a significant growth opportunity. The company, based in Beijing and in Morrisville, N.C., said that it paid $200 million in cash and stock to acquire its former mobile phone assets from a group of Hong Kong and other investors. The directors now consider that it is appropriate to move aggressively to capture the opportunity in the mobile internet business, the company announced in a statement released through the Hong Kong stock exchange. Like other computer makers, Lenovo was battered by the global economic crisis and a slump in sales. But the firm reported this month its profit for the quarter ending Sept. 30 more than doubled from a year earlier to $53 million.

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