Lenovo Group and NEC Corp. on Friday announced a strategic relationship that creates a joint venture between the two companies and forms the largest PC group in Japan. The agreement aligns NEC, Japan’s number one PC company, with Lenovo, the fastest growing top-five PC maker in the world. The new joint venture gives both Lenovo and NEC a unique opportunity to grow their commercial and consumer PC businesses in Japan.
Lenovo and NEC will form NEC Lenovo Japan Group, and under this group, Lenovo and NEC will establish a new organization known as Lenovo NEC Holdings B.V., registered in the Netherlands. Under the terms of the agreement, Lenovo will hold a 51% stake in the new joint venture, while NEC will hold a 49% stake. Hideyo Takasu, currently president of NEC Personal Products, will become president and chief executive officer of the new joint venture, while Roderick Lappin, currently representative director and president of Lenovo Japan, will become executive chairman. Lenovo Japan and NEC Personal Computer will both become 100% subsidiary companies of the new joint venture. As the result of this transaction and upon closing, NEC will receive from Lenovo $175million through an issue of Lenovo shares.
The new joint venture combines NEC’s market reputation, product development capabilities, well-regarded customer service and knowledge of customer needs in Japan with Lenovo’s heritage of technology expertise, strong global business momentum, and global supply chain reach.
“The agreement with NEC is a perfect fit for our strategy. It reinforces our commitment to our core PC business while, at the same time, providing important new opportunities for growth in Japan. We have a long history of innovation in Japan and a firm commitment to the Japanese market. Now, we are combining our global strength and momentum with NEC’s market leadership. It is the perfect partnership for us and for our customers,” said Yang Yuanqing, chief executive officer of Lenovo.
NEC has long been the leading PC company in Japan with widespread sales, marketing and distribution capabilities. Lenovo, the fourth-largest PC maker in the world currently has a major research center, known as the Yamato Lab, in Yokohama, Japan, and a main sales office in Tokyo. Combining the operations of both companies in Japan will commence immediately with cooperation and collaboration in manufacturing, development and sales. The transaction is expected to close by June 30, 2011.