Shocking news came from two well-known computer vendor is Lenovo and NEC, which is the largest vendor in Japan. They announced plans to form a joint company the largest in Japan with the name "PC Group". From this partnership Lenovo will have a 51% stake while the rest will have NEC.
Most of the deal, NEC will receive cash of $ 175,000,000 through the issuance of shares of Lenovo Lenovo. Basically, these costs are the costs to Lenovo for Facebook to penetrate the Japanese market is already owned by NEC.
This step can be practically reasonable, because the NEC was not present in the Japanese PC market, while Lenovo's tramp in the country once the samurai. According to existing data NEC controls 18% of the Japanese PC market and only 0.9% in the global.
About Lenovo
Lenovo (HKSE: 992) (ADR: LNVGY) is dedicated to building exceptionally engineered PCs. Lenovo’s business model is built on innovation, operational efficiency, and customer satisfaction as well as a focus on investment in emerging markets. Formed by Lenovo Group’s acquisition of the former IBM Personal Computing Division, the Company develops manufactures and markets reliable, high-quality, secure, and easy-to-use technology products and services worldwide. Lenovo has major research centers in Yamato, Japan; Beijing, Shanghai and Shenzhen, China; and Raleigh, North Carolina. For more information, see www.lenovo.com.
In its fiscal year closing March 31, 2010, Lenovo recorded US$16.6 billion in revenue and last year reached a record high global market share at 10.4%*. Lenovo, the fastest growing top five consumer PC maker in the world, and the third largest commercial laptop manufacturer globally, has grown faster than the PC industry six quarters in a row worldwide, and Lenovo Japan has been the fastest growing PC company five quarters in a row in Japan.
Goldman Sachs acted as exclusive financial advisor to Lenovo for the NEC JV agreement.
About NEC Corporation
NEC Corporation (TSE:6701) is a leader in the integration of IT and network technologies that benefit businesses and people around the world. By providing a combination of products and solutions that cross utilize the company’s experience and global resources, NEC’s advanced technologies meet the complex and ever-changing needs of its customers. NEC brings more than 100 years of expertise in technological innovation to empower people, businesses and society. For more information, visit NEC at http://www.nec.com.
