Lenovo Acquires 231 Million Euros to Purchase German PC Manufacturers

Under the impact of the iPad, the global PC market is facing a severe test. However, Lenovo Group went against the market and not only handed over a beautiful financial report card but also continued to launch the acquisition of the vehicle to expand overseas markets. Yesterday, Lenovo announced the acquisition of M edion AG, a German PC company, for 231 million euros. Yang Yuanqing, CEO of Lenovo Group, said: “We will work together to build a complete end-to-end consumer business platform, accelerate our PC business, and enhance our capabilities, expertise and relationships to win the mobile Internet market.” In January this year, Lenovo once Spends US$175 million to acquire Japanese PC maker NEC.

Recently, the 2010-2011 financial year report released by Lenovo Group shows that in the fiscal year, Lenovo achieved a turnover of 21.6 billion U.S. dollars, and its net profit doubled year-on-year to 2.73 U.S. dollars; personal computer sales increased by 28% year-on-year, greatly exceeding the industry's 7.4% over the same period. The increase.

Lenovo's acquisition of Lenovo's third-largest PC factory in Germany Yesterday, Lenovo announced the acquisition of Medion AG, a German PC company. According to the agreement, Lenovo will use cash to purchase 37% of M edion shares in the open market at a price of 13 euros per share, with a total transaction price of 231 million euros. The purchase price of 13 euros per share is a premium of 29% over Medion’s average closing price over the past 30 days. Both the Lenovo Group and M edion’s board of directors approved the transaction. The public acquisition is expected to be completed in the third quarter of 2011, and the transfer of control rights and income statement is expected to be completed after the vote of the shareholders meeting in the fourth quarter of 2011.

Medion AG is a leading company in personal computers, multimedia products, mobile communications services and consumer electronics. After the completion of the acquisition transaction, Lenovo’s market share in Germany will double, becoming Germany’s third largest PC maker in Europe’s largest personal computer market. The two companies will jointly own more than 14% of the German personal computer market and the Western European personal computer market. About 7.5% of the share.

Yang Yuanqing, the CEO of Lenovo Group, pointed out that the acquisition of Medion is an important step for Lenovo to achieve its long-term strategic goal. It will be a powerful promotion for both the core PC business and the new business focused on development. "Medion's sales, marketing, service and retail channel capabilities can complement the growth of Lenovo's consumer business in Western Europe, accelerate Lenovo's PC business and expand the mobile Internet market."

Emerging markets luster Lenovo's financial report Since the second half of last year, global PC shipment growth has slowed down significantly, especially in the first quarter of this year, global PC shipments fell 3.2% year-on-year (IDC data). The uncertainty of the economic recovery made the mature market PC procurement less powerful than expected, coupled with the impact of Apple iPad, HP, Dell, Acer's top three PC makers shipments and market share have declined.

However, Lenovo Group's strategic expansion in emerging markets in recent years has been gradually highlighted. According to Yang Yuanqing, from 2010 to 2011 fiscal year (April 1, 2010 to March 31, 2011), in emerging markets such as Russia and India, Lenovo achieved more than twice the industry average growth; in the Chinese mainland market, Lenovo The growth rate reached 12.3%, firmly occupying the top position in the market. In the entire emerging market, Lenovo has grown to become the number one vendor. In particular, in the first quarter of this year, the top three manufacturers suffered from negative growth. Lenovo’s emerging market sales of personal computers increased by 31.5% year-on-year, and consolidated sales reached US$850 million, accounting for 17.4% of the Group’s total sales.

“The fiscal year 2010-2011 has been very fruitful for Lenovo,” said Yang Yuanqing. Lenovo has been the world’s fastest-growing mainstream personal computer maker for six consecutive quarters, and its global market share has reached a record high of 10.2%. The amount exceeded US$20 billion for the first time, reaching US$21 billion.

Le Pad's domestic market share exceeds 20%

At the beginning of last year, Lenovo's mobile Internet strategy was introduced. After more than a year of training, in January this year, Lenovo established the Mobile Internet and Digital Home Business Group to focus on the mobile Internet business. The Le Pad, launched in March this year, was the first shot to be launched after the establishment of the Mobile Internet and Digital Home Business Group. As part of Lenovo's mobile Internet strategy, Lenovo has high hopes for Music Pad. Statistics show that the sales volume of tablet computers in the Chinese market was more than 1 million units last year, and this figure is expected to increase by 4-5 times this year, and tablet computers will account for 15% to 20% of the mainland computer market in the future.

Yang Yuanqing revealed that after the launch of LePad, the market repercussions far exceeded expectations, causing Le Pad to be in short supply. "Specific sales figures will not be released until the next quarter. However, our goal this year is clear, hoping to occupy more than 20% of the domestic market share, and become the leader of this market." It is reported that Lenovo's first generation of music Pad mainly For consumer customers, in the second half of the year, Lenovo will also launch tablet computers targeting commercial customers.