To expand market share in consumer PCs and mobile Internet market
Lenovo has announced its acquistion of Germany’s MEDION, a provider in PC, mobile communications service and consumer electronics, to expand its market share in consumer PCs and mobile Internet market.
Lenovo said that the combined company will have approximately 14% share in the German PC market and around 7.5% share in the Western Europe PC market.
Under the terms of the agreement, Lenovo will commence a public offer for all outstanding public shares of MEDION for 13 Euros per share in cash.
The combined companies expect to realise the benefits of collaboration, global scale, cost savings and increased synergies in the areas of procurement, global supply chain, software development, distribution channels and product and business model innovation.
MEDION founder and CEO Gerd Brachmann said the announcement will strengthen MEDION’s competitive marketplace position while maintaining the stability, flexibility and existing company structure in Essen.
Lenovo CEO Yang Yuanqing said the agreement will complement both Lenovo’s core PC business and new businesses which are key areas for development.
"With their strong consumer sales, marketing, services and retail capabilities, MEDION business is perfectly aligned with our consumer growth strategy in Western Europe," Yuanqing said.
"Together, we can build a complete, end-to-end consumer platform that will both accelerate our PC business and give us the capabilities, expertise and relationships needed to win in the mobile Internet space."