Lenovo to acquire German PC maker Medion
A Wall Street Journal report indicates that the Chinese PC manufacturer, Lenovo, plans to buy Germany’s Medion AG. It is believed that this deal would double Lenovo’s market share in Germany and help it expand its business in a “mature market such as Europe”.
The cash-and-stock deal supposedly has an estimated value of about US $907 million. The chairman of Medion, Gerd Brachmann, has apparently agreed to sell 40 percent of his shares at almost $19 per share and also take some of Lenovo’s.
According to the technology research company, Gartner, the Western European market is currently dominated by companies like Apple, Dell, HP, ASUS and Toshiba. After the deal in question, Lenovo will reportedly have 14% of the German market and 7.5% of the European, which means that it will overtake Apple (6.6%) and be very close to ASUS (8.6%).
Lenovo acquired IBM’s PC business in 2005, then refocused on the Chinese market and is presently among the top 5 PC makers in the world.
About Medion AG
Medion AG is headquartered in the city of Essen, NRW, Germany and manufactures consumer electronic goods including the Akoya line of laptops and netbooks, as well as desktop PCs, TVs etc. The company has reportedly started offering its products outside of Germany several years ago with its main focus being on Western/Eastern Europe, North America and the Asia-Pacific region.