Lenovo Group acquired Medion: strengthening the PC market expansion in Western Europe

Lenovo Group today announced that: the acquisition of Germany's Medion AG, according to Lenovo Group, said the acquisition is completed, Lenovo's market share in Germany will double, becoming the largest PC market in Europe, the third largest vendor. The two sides will join hands with the German PC market more than 14% of the share, and the Western European personal computer market share of about 7.5%.

It is understood, Medion AG is a personal computer, multimedia, mobile communications services and a leading consumer electronics companies.

Lenovo CEO Yang said of the acquisition of the incident, "the acquisition of Lenovo Medion is a long-term strategic objectives to achieve an important step, both for the core PC business, or focus on the development of new business, will be effective in promoting . "Yang that, Medion's sales, marketing, service and retail channels ability to associate with the consumer business growth in Western Europe. Lenovo in its front-end manufacturing capability and competitiveness of such back-end to form complementary advantages, accelerate the Lenovo PC business, expand the mobile Internet market.

Pursuant to an agreement, Lenovo will use the cash price of 13 euros per share on the open market acquisition of shares in circulation in the Medion, which over the past 30 days than the average closing price premium of about 29% over its average closing over the past 90 days price premium of about 27%.

According to another agreement, Medion, founder and CEO Gerd Brachmann commitment not to participate in the tender offer, while 40% of the outstanding shares Medion 13 euros per share sold to Lenovo Group. Group to acquire part of the Brachmann, 80% in cash, an additional 20% stake in Lenovo Group will be paid. The acquisition is premised Gerd Brachmann shareholders other than the Medion at least 15% of the sale of shares.

Gerd Brachmann Medion AG will continue to be a major shareholder, holding 20% ​​of the shares.

"Lenovo Group's acquisition will strengthen the competitive position of Medion's market, while maintaining the existing corporate structure in Essen, stability and flexibility," Gerd Brachmann said.

Last week, Lenovo announced the results of the 2010/2011 fiscal year, sales topped 21 billion U.S. dollars.

In the transaction, both companies expect all existing operations, including customer service, product delivery and warranty service will be as usual. In the near future, Medion and Lenovo Group will continue to retain their own brands and through their existing channels to the appropriate sales and support.

Lenovo Group and Medion's board of directors have approved this transaction. But the procedure still need to be completed subject to certain conditions, including public participation in the acquisition of the minimum amount of public and relevant regulations. Lenovo Group will pay for the existing internal cash transactions. Tender offer is expected to be completed in the third quarter of 2011, while the control and profit transfer agreement is expected to be in the fourth quarter of 2011, the shareholders will vote later.

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