Lenovo Group Ltd. announced Monday it has gotten approvals to purchase International Business Machines Corp.'s low-end computer server in a deal amounting to $2.1 billion.
The move is reported to be the Chinese computer technology company to expand their market in a market full of competitors selling personal computers.
Lenovo currently has its own servers, but they play a minor role compared to the company's other businesses globally.
The purchase of IBM's server reflects Lenovo's efforts to broaden its services beyond PC and other devices, for which they are known for.
Using IBM's 86 server units will help the 2013 world's largest personal computer vendor to up its game in a $50 billion server market.
Lenovo announced on Mon. that the original value of $2.3 billion of the IBM server went down after changes in the value of the IBM division's lower than projected inventories.
However, the terms and conditions of the deal still remain unchanged and the company sees the deal to be inked on Wed, according to Lenovo.
With the company currently operating in over 60 countries across the globe, Lenovo still has several expansion plans in line this year.
Lenovo is continuing its expansion by acquiring another company in a multi-billion dollar deal.
Lenovo is reported to acquire Motorola Mobility hanset business from Google Inc. for $2.91 billion.
The maker of personal computers and electronic devices expects that the Motorola deal will commence by the end of the year.
The deal will reportedly benefit the two companies as IBM to dispose of its less-profitable business to focus its attention on emerging technologies like cloud computing and data analysis, while Lenovo will gain a larger price of the computing hardware market.
Lenovo previously was able to get approval from the Committee of Foreign Investment in the United States (CFIUS) back in 2005 to complete the deal to buy IBM's personal-computing division for $1.25 billion.
