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Lenovo likely to acquire Fujitsu’s PC division

Fujitsu is looking to sell; Lenovo is looking to buy – that’s how deals happen after all. Fujitsu wants to ditch the PC division and focus on better things: the IT services industry.

Fujitsu + Lenovo

The two companies would be reaching a final deal at some point this month; the news comes via Nikkei Asian Review. It seems for now there are two options for how the deal can go:

  • Fujitsu transfers over its PC design, development and manufacturing pipeline to Lenovo.
  • Lenovo buys a majority stake in Fujitsu’s PC subsidiary.

Either way, about 2000 Fujitsu employees are expected to move to Lenovo – who has promised to maintain existing factories and the jobs.

In December of last year, Fujitsu announced it would be splitting off its PC and mobile divisions – this process was completed in February this year.

While Fujitsu Client Computing handled the desktop and laptop operations, Fujitsu Connected Technologies ran the mobile side of the company.

This deal seems to involve the Client Computing subsidiary – the acquisition would likely include the whole subsidiary, or at least a (majority) part of it.

In the last fiscal year, Fujitsu shipped over 4 million PC’s worldwide, while losing $96.5 million in the process. Evidently, Fujitsu needs help in running this part of its business, and selling it off would be the easiest way to stop the losses.

Annual PC sales in Japan – Fujitsu’s home country – have been on a decline as well, with only 10 million units shipped last year. Fujitsu clearly has a minuscule share of this already-shrinking market, while the smartphone and tablet industry is somewhat stable and growing.

A three-way merger between Fujitsu, Toshiba’s PC division, VAIO – which became its own company after a split from Sony – failed earlier this year, leaving Fujitsu with fewer options.

Image Credit: Nikkei Asian Review

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