Lenovo reacquires mobile phone business for $200 million
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MORRISVILLE, N.C. – Lenovo, the world’s fourth largest PC maker which is based in Morrisville, is reacquiring Lenovo Mobile Communications Technology, the mobile phone business unit that it had spun off as a separate operation in 2008.
Reuters and Dow Jones both reported the news early Friday as did The Associated Press.
Lenovo sold its mobile unit to focus on computers but said the technologies are now converging, creating a "significant growth opportunity."
"Since the sale in 2008, Lenovo Mobile has noticeably improved its financial position and market presence under decisive management actions, and positioned itself for growth," Lenovo said in a statement to the Hong Kong Stock Exchange, according to Reuters.
"The directors believe that through the acquisition the group can exploit Lenovo Mobile's experienced and successful leadership team in the China mobile industry,” the statement added.
Lenovo is buying the mobile group from four companies that are owned in part by Lenovo’s parent, :Lenovo Holdings, which is based in China.
Most Lenovo personnel and operations are based in China. Its stock is traded on the Hong Kong exchange.
Like other computer makers, Lenovo was battered by the global economic crisis and a slump in sales. But the company reported this month its profit for the quarter ending Sept. 30 more than doubled from a year earlier to $53 million.
The Associated Press contributed to this story.
Copyright 2010 Local Tech Wire. All rights reserved.
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