Lenovo Purchases Medion Computers for $671 Million
Lenovo has announced it purchased Medion AG, a German computer company, for $671 million. The move makes Lenovo the third-largest PC company in Europe with a 7.5% market share and doubles their market share in Germany to 14%. The purchase is Lenovo’s largest since purchasing IBM’s PC business.
Lenovo is buying out all outstanding public shares of Medion AG for 13 Euros per share in cash, a 29 percent premium over the stock’s average price in the last month. Lenovo is financing the buyout using its cash resources; the deal is expected to close in the third quarter of 2011.