More than 7,000 IBM employees, including some 2,000 based in Research Triangle Park, will be transferring to Lenovo as the $2.1 billion deal for IBM’s x86 business closes this week, a senior Lenovo executive said Monday morning.

However, there are no guarantees going forward.

Gerry Smith, executive vice president of Lenovo Group and president of Enterprise Business Group and Americas Group who will oversee the combined server businesses of Lenovo and IBM, said in a conference call that Lenovo would stand by stated previous commitments to hire all IBM workers.

Smith then said that as the two businesses are integrated that Lenovo would be looking for efficiencies and cost savings.

Earlier in prepared remarks, Smith noted: “[W]e will drive efficiency and scale across the business to improve productivity and profitability.” Smith also declared fear, uncertainty and doubt about the deal circulated by competitors we “over.”

Many IBMers in RTP involved in the deal will report to work Wednesday at Lenovo’s two recently leased buildings in Morrisville for new employee orientation, according to Lenovo’s senior North American executive Jay Parker.

However, just how many workers will be involved is not yet clear. Parker said “well over 1,000” were involved locally.

Parker also reiterated Smith’;s comments about jobs. “What decisions will be made over time is not known,” Parker said, noting that decisions will be made about driving sales, growing revenues and finding efficiencies.

Before the call, Lenovo Chairman and CEO Yang Yuanqing said the $2.1 billion acquisition of IBM’s x86 server business would close on Wednesday. He also set a goal of $5 billion in revenue and profitability within a year.

Parker said “whether or not” how business proceeds and that possibly hit employee numbers “we just don’t know yet.”

Recent WRAL TechWire coverage of IBM-X86 deal:

  • Lenovo’s Yang says Lenovo will win global server battle.
  • What’s coming next? Lenovo, IBM execs spell out aggressive plans for x86 server business.
  • Lenovo reaffirms commitment to hire all IBMers involved in x86 deal
  • Lenovo picks RTP location for transferred IBM workers
  • IBM pays Chinese workers to accept transfer to Lenovo
  • Not all of IBM’s x86 workers in China happy with Lenovo deal
  • Lenovo: Strike by IBM workers in China is an IBM matter.

The company also issued a formal statement early Monday and then hosted a global media conference call.

Both the U.S. and Chinese governments as well as European regulators have approved the sale, which was originally disclosed in January.

It’s the second major transaction between the two companies. In 2005, Lenovo acquired IBM’s PC business, which also was based in the Triangle, for some $1.25 billion.

The value of the deal is $200 million less than announced initially. The price was reduced from the previously announced $2.3 billion due to a change in valuation of IBM’s inventory and deferred revenue, according to Lenovo. It said none of the terms of the agreement changed.

As a graphic posted with this story shows, the deal gives Lenovo a larger global footprint for its own growing server business and adds some 7,000 IBM workers worldwide. Lenovo has promised that all the IBMers will be hired.

Lenovo is in the process of upfitting recently leased office space in RTP to accommodate the IBM workers. IBM bases its x86 business group in RTP.

The transfers will double the size of Lenovo’s Triangle work force, Lenovo has said.

The IBM assets will add a “growth engine” to a growing array of businesses that include computers, mobile devices and services, chairman Yang Yuanqing said in a telephone interview.
Lenovo, which bought IBM’s PC unit in 2005, has carried out a flurry of acquisitions and launched initiatives including creating a smartphone brand to expand into faster-growing businesses.

Also this year, Lenovo bought the Motorola Mobility smartphone business from Google Inc. for $2.9 billion.

“Our mobile business and our enterprise business will be growing even faster than our PC business,” said Yang.

Lenovo has said the IBM acquisition will propel it from a No. 9 ranking among server manufacturers to No. 3 behind Hewlett Packard Co. and Dell Inc.

“After we stabilize the business, we will challenge the top two,” Yang told Bloomberg News in an interview.

The deal involves IBM’s System x, BladeCenter and Flex System blade servers and switches, x86-based Flex integrated systems, NeXtScale and iDataPlex servers and associated software, blade networking and maintenance operations, Lenovo said.

IBM keeps its System z mainframes, Power Systems, Storage Systems, Power-based Flex servers, PureApplication and PureData appliances.

“With the close of the x86 acquisition, Lenovo will add a world-class business that extends our capabilities in enterprise hardware and services, immediately making us a strong number three in the global server market,” Yang said in a statement. “Now, our priorities are to ensure a smooth integration and deliver a seamless transition for customers. By combining Lenovo’s global reach, efficiency and operational excellence with IBM’s legendary quality, innovation and service, I am confident that we will have competitive advantages to help us drive profitable growth and build Lenovo into a global enterprise leader.”

Lenovo, with headquarters in Beijing and in Morrisville, passed HP in 2013 as the No. 1 PC maker, though that achievement was tempered by a slowdown in demand as users shift to mobile devices.

Lenovo has said it expects mobile devices to become the bulk of its business in coming years.

In the quarter ending in June, sales of smartphones, tablet computers and other wireless technology rose 32 percent over a year earlier, Lenovo reported earlier. That helped to boost quarterly profit by 23 percent to $214 million.

The IBM manager in charge of the x86 server business, Adalio Sanchez, will stay in that post with Lenovo, the company said.

{The Associated Press contributed to this report.]