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Lenovo and IBM announced a deal on January 23, 2014, for Lenovo to acquire IBM’s x86 server business for approximately $2.3 billion. Lenovo later reported an adjusted price of approximately $2.1 billion in September, before the initial closing on October 1, 2014. The figures describe different stages of the transaction, not two separate acquisitions.

Why did the IBM server deal price change?

The announced price and adjusted price were reported at different points in the transaction. Lenovo’s January 23 announcement put the deal at approximately US$2.3 billion; its September 29 announcement reported an adjusted price of approximately US$2.1 billion as it prepared to close. The announcements establish the two reported values and their timing, but do not specify the reason for the adjustment.

Transaction stage Reported value Source and date
Definitive agreement announced Approximately US$2.3 billion Lenovo, January 23, 2014
Adjusted price ahead of initial closing Approximately US$2.1 billion Lenovo, September 29, 2014

What did Lenovo buy from IBM?

The transaction covered IBM’s x86 server portfolio and related operations, rather than all of IBM’s server or enterprise hardware businesses. Lenovo listed the following assets and activities as included:

  • System x servers
  • BladeCenter and Flex System blade servers and switches
  • x86-based Flex integrated systems
  • NeXtScale and iDataPlex
  • Associated software, blade networking, and maintenance operations

System x is therefore a historically relevant product name in this deal. These announcements do not establish current availability of particular System x models; anyone considering used hardware should check the exact model, condition, and compatibility against a live listing.

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Which IBM businesses stayed with IBM?

IBM retained its System z mainframes, Power Systems, Storage Systems, Power-based Flex servers, PureApplication, and PureData. The distinction matters: the acquisition was specifically for the x86 server business and the associated assets named in Lenovo’s announcement, not IBM’s full server, storage, or systems portfolio.

When was the acquisition agreed and closed?

  1. January 23, 2014: Lenovo and IBM announced a definitive agreement for the acquisition.
  2. September 29, 2014: Lenovo said regulatory conditions had been satisfied, including clearance from CFIUS, the European Commission, and China’s Ministry of Commerce, and anticipated an initial closing effective October 1.
  3. October 1, 2014: Lenovo announced that the initial closing was complete and that transition had begun in most major markets.

The agreement date and closing date are not interchangeable: the deal was announced in January, while the initial closing occurred in October.

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Lenovo ThinkSystem ST250 Mini Tower Server with Intel Xeon E-2124 Quad-Core CPU, 32GB DDR4, 8TB HDD, RAID (Renewed)
  • Lenovo ThinkSystem ST250 Mini Tower Server for Small Business and Remote Offices
  • Processor: Intel Xeon E-2124 Quad-Core 3.3GHz 8MB CPU, Up To 4.3GHz Turbo
  • Memory: 32GB DDR4 PC4-21300 2666MHz Unbuffered Memory
  • Storage: 8TB (4 x 2TB) 6Gb/s SATA Hard Drives for High Capacity Storage; JBOD RAID
  • Serial Com; VGA; USB 3.1 Gen 1; USB 3.1 Gen 2; 2 x 1GbE ports standard; 1 x 1GbE dedicated management port; Hard drives and memory upgrades included separately NOT installed, installation required.

What was the business worth to IBM before the sale?

IBM reported that the x86 server business generated approximately US$4.6 billion in revenue in 2013 and was essentially breakeven on a pre-tax basis. Those are historical figures reported in IBM’s first-quarter 2014 Form 10-Q, not current financial results. IBM financial reports

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How Lenovo described the deal

Lenovo chairman and CEO Yang Yuanqing said at the time: “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.” This was Lenovo’s contemporaneous characterization of its market position, not an independent market assessment. Lenovo’s October 1, 2014 closing announcement

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Lenovo ThinkSystem SR630 Rack Server Bundle with Rail Kit, 2 x Intel Xeon Silver 4110, 128GB DDR4, 8TB SSD, RAID (Renewed)
  • Lenovo ThinkSystem SR630 is your reliable, easy to manage, and scalable 1U rack server, designed to excel at running a wide range of applications for small businesses up to large enterprises; rail kit is included for easy server installation
  • Get professional-grade performance with Dual (2) Intel Xeon Silver 4110 8-Core 2.10GHz 11MB processors, with up to 3.2GHz turbo
  • Speed, quality and reliability with 128GB DDR4 memory; Keep your data safe with software RAID
  • Increase application performance, manage information more efficiently and store plenty of data with 8TB (4 x 2TB) 6Gb/s SATA III Solid State Drives
  • Connectivity: VGA; 3 x USB 3.0; 1 x USB 2.0; Network: 4 x 1GbE ports standard; 1 x 1GbE dedicated management port; Hard drives and memory upgrades included separately NOT installed, installation required.
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Lenovo ThinkSystem ST45 Tower Server, AMD EPYC 4244P 6-Core AMD 3.8 GHz Processor, Integrated Graphics, ECC Memory, RJ45, 2X DP, HDMI, No HDD, No Operating System
  • Powerful AMD EPYC Performance – Powered by AMD EPYC 4244P processor with up to 6 cores, delivering exceptional performance for virtualization, business applications, databases, and growing workloads.
  • Memory – Supports DDR5 ECC UDIMM memory for higher bandwidth, improved efficiency, and automatic error correction to help maximize system reliability and reduce data corruption. This build comes with 16GB DDR5 RAM.
  • Scalability and Flexibility – Tower servers are designed for easy upgrades and expansion, making them an ideal choice for development teams and growing businesses. They provide a dedicated environment for software development, testing, and deployment. This server is sold without an operating system, allowing you to select and install the OS and software that best fit your specific needs during setup.
  • Designed for Small Business and Remote Offices – Quiet tower design with enterprise-grade reliability makes it ideal for file sharing, collaboration, backup, virtualization, and office applications without requiring a dedicated server room.
  • Easy to Manage – Features multiple networking options and room for future upgrades, helping protect your investment as your business grows. This server is designed to run 24 hours a day, 7 days a week.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.