Computer-maker Lenovo is planning to buy back Lenovo Mobile, a mobile handset maker it founded in 2002 and spun off in 2008. Lenovo will pay $200 million in cash and shares, reports the WSJ.
In 2008, Lenovo sold the handset business for $100 million to concentrate on selling PCs. Since then, Lenovo said that Lenovo Mobile has improved its financial position, and of course, the mobile market has become significantly more attractive to all PC-makers. Lenovo said it doesn’t intend on competing internationally, but rather will focus on China, where Lenovo Mobile primarily operates.
Lenovo agreed to buy the business from a group of investors from Lenovo’s parent, Legend Holdings. Lenovo will fund the transaction with cash on hand, but the deal must be approved by Lenovo shareholders.