Lenovo exec: Acquisitions from IBM, Google are still 'on track'
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On The Web
Research Triangle Park, N.C. — Lenovo is still on track to close on its $5 billion dollars worth of acquisitions from IBM and Google before the end of the year, a company executive says.
"We don’t comment on regulatory review processes and we remain on track to close both deals by the end of the year," Ray Gorman, executive director of communications for Lenovo, tells WRAL TechWire.
Gorman responded to a query following the latest report from a publication on Thursday that Lenovo was encountering difficulties in closing the deal with IBM for its x86 server business.
Lenovo is also seeking regulatory approval to acquire Google's Motorola Mobility business.
After months of talking, Lenovo and IBM (NYSE: IBM) remain involved in discussions with the U.S. government as they try to win approval for their $2.3 billion x86 server deal.
The deal "remains in limbo," The Wall Street Journal reported.
The hangup remains concerns about security, the newspaper says.
Recent WRAL TechWire Coverage of IBM-Lenovo Deal:
- Lenovo, IBM seek extension of deal review
- Lenovo, IBM encounter a "perfect storm"
- Lenovo reaffirms commitment to hire x86 workers
"The deal, struck in January, remains in limbo as the U.S. government investigates security issues around IBM's x86 servers, which are used in the nation's communications networks and in data centers that support the Pentagon's computer networks, say people familiar with the matter," according to The Journal.
The Committee on Foreign Investment in the U.S. is "worried" that servers "could be accessed remotely by Chinese spies or hackers" or even "compromised through maintenance," the paper says.
The Journal cited unnamed sources.
Lenovo was able to overcome similar concerns in 2005 when it bought IBM's personal computing business, which was largely based in Raleigh.
Much of the x86 business also is based in the Triangle, including its top management.
Earlier this month, Bloomberg reported that IBM and Lenovo had sought an extension of the government review.
In April, Bloomberg reported that the two companies were running into na "perfect storm" as they review process unfolded.
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