Lenovo purchases 51 percent of Fujitsu's PC business, helps them aim for the number one spot
Today Lenovo, the Development Bank of Japan (DBJ), and Fujitsu Limited announced a strategic collaboration that sees the former two companies purchasing a 51 percent and 5 percent share respectively in ownership of Fujitsu Client Computer Limited (Fujitsu’s PC division). The joint venture focuses on all aspects of producing PCs (desktop and laptop) from research, through manufacturing to sales. The combined market share of both companies may allow Lenovo to reclaim their number one spot from HP.
Fujitsu will receive JP¥28 billion (US$245.4 million) from the sale, with JP¥25.5 billion (US$223.5 million) coming from Lenovo, which gives them a controlling share in the company. Fujitsu Client Computing Limited will continue to operate as a joint venture company under its current name, maintaining any currently established business relationships, and giving Lenovo an indirect market share in areas where Fujitsu was performing more strongly.
Fujitsu spun off their PC business in previous years as part of a strategy to isolate the less profitable parts of the operation. Fujitsu themselves remain a large and lucrative business with annual revenue of 4.5 trillion yen (US$40 billion) as an aggregation of all aspects of the company. Lenovo, by comparison, has only slightly higher annual revenue at $43 billion, but their focuses are almost entirely on PC, tablet, and smartphone.
While Fujitsu is a popular Japanese company with a good share locally, they have also achieved success internationally in desktop and laptop manufacturing due in part to the former partnership of Fujitsu-Siemens Computers (Based in Germany). This gave a strong presence in parts of Europe as well as Japan, the Middle East, Africa, and some other countries.