Lenovo Invests In IT Service Provider; Forms Joint Systems Integrator Venture
The strategic partnership will provide “one-stop customer solutions that integrate services, devices and digital infrastructure” across the Asia Pacific region.
Among the wildcards to keep in mind: Will Lenovo leverage a similar IT services investment strategy in Europe or North America? We’ll be watching.
Lenovo Essentially Acquires An IT Services Business
The new joint business will be known as PCCW Lenovo Technology Solutions Limited (PLTS). Lenovo will pay $513.6 million in cash and $100 million in stock to become an 84% shareholder in PLTS, and 20% shareholder in PCCW Network Services, the holding company of PCCW’s IT solutions business.
PCCW Solutions positions itself as “a leading IT services provider in Asia Pacific, and is ranked as the No. 1 leader in system integration and application development in Hong Kong,” the company asserts.
Lenovo’s move to buy a majority stake in PLTS is technology M&A deal number 551 that ChannelE2E has covered so far in 2022. See more than 1,000 technology M&A deals involving MSPs, MSSPs & IT service providers listed here.
Lenovo-PCCW Joint IT Services Strategy
In a prepared statement about the deal, Ken Wong, Executive Vice President of Lenovo, and President of Lenovo Services and Solutions Group:
“The partnership reinforces and strengthens our transformation from a devices and infrastructure company into a global leader in IT solutions and services. Our solutions and services business continues to be the cornerstone of our growth ambitions and this strategic partnership with PCCW accelerates the opportunity to bring innovative solutions to market for customers across Asia Pacific. PCCW’s strength in key industries, proven solution capabilities, and strong talent pool make them the right partner to catapult our collective IT services leadership even further.”
Added Susanna Hui, PCCW’s Acting Group Managing Director:
“We are very excited to be aligned with a leading global technology player. We see this strategic partnership as a unique opportunity to accelerate the growth of our IT solutions business. We remain dedicated and fully committed to delivering digital and managed services for our existing customers in Hong Kong, particularly those in the public sector. Meanwhile, we look forward to contributing our resources and experience together with Lenovo to fuel the expansion of the IT solutions business across Asia Pacific and create compelling value for our shareholders.”
Concluded Jerry Li, managing director of PCCW Solutions.
“The strategic partnership represents a significant milestone in our development as a major IT services provider in Asia. We are in the right place at the right time, given the continued technology acceleration in the region. This partnership means that our teams will have even more opportunities to expand their skills. Building on the strong foundations of PCCW and Lenovo, we look forward to providing a wider range of digital solutions to our clients and contributing further to the smart cities development in the region.”