Lenovo Group has planned to buy Fujitsu PC unit stake for up to $269 million. The company declared that it had reached an agreement to buy a 51 percent stake in Fujitsu’s personal computer unit for up to $269 million.
The company would pay for the stake in Fujitsu Client Computing Ltd with 17.85 billion yen ($156.70 million) in cash and 2.55 billion-12.75 billion yen based on performance to 2020.
Lenovo reported a profit of $139 million in the beginning of this year, while for the second quarter ended September, versus $157 million a year ago.
The scenario is like, PC makers around the world are struggling as consumers switch to mobile devices. As per the Gartner reports, worldwide shipment of personal computers fell 3.6 percent from a year ago in the third quarter of 2017, the 12th such decline in a row.
This has also impacted Lenovo and can be seen as the company lost its title as the world’s largest PC maker to HP Inc earlier this year.
On the other hand, Lenovo’s struggling mobile business group, which it is looking to turnaround in the second half of this fiscal year, reported a narrower operating loss before taxation of $261 million for the interim period. The loss at its data center business widened to $214 million.
Lenovo said that market conditions would remain challenging in the short term, but on the other hand, the agreement with Fujitsu would help it enhance its business globally.