IBM to sell its server business to Chinese firm - KXLT - Fox 47 Rochester MN News, Weather, Sports #rochmn

IBM to sell its server business to Chinese firm

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ROCHESTER, Minn. (KXLT) -- IBM has reached a deal to sell its server business overnight.

Chinese company Lenovo group made the purchase early Thursday morning for 2.3 billion dollars.

Lenovo also says it plans to offer jobs to 7,500 IBM employees in locations around the world.

Lenovo and IBM have collaborated for a number of years. The Chinese company acquired IBM's PC unit in 2005.

IBM says it will continue to develop software for the platform and will provide service to customers for an extended period after the acquisition.

Talks between IBM and Lenovo fell apart last year due to differences over pricing, with media reports at the time suggesting IBM wanted as much as $6 billion for the unit.

IBM's server business was the world's second-largest, with a 22.9 percent share of the $12.3 billion market in the third quarter of 2013, according to technology research firm Gartner.

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