Lenovo Group and IBM today announced the closing of the acquisition of IBM’s Personal Computing Division by Lenovo, creating the world’s third-largest personal computing company.

Under the terms of the transaction, Lenovo has paid IBM $1.25 billion, comprised of approximately US$650 million in cash and US$600 million in Lenovo Group shares. IBM’s ownership in Lenovo upon closing is 18.9 percent. Additionally, Lenovo will assume approximately US$500 million of net balance sheet liabilities from IBM. (THG)