Lenovo Acquires CCE and Hits Third in Brazilian PC Market

September 6, news, yesterday's announcement of the acquisition, Lenovo CFO Huang Weiming said today that in the Brazilian PC market, Lenovo’s share is No. 7, CCE is No. 6, after the acquisition Lenovo will become the third largest PC maker in Brazil, Lenovo will Through this move, a mature brand is harvested for rapid development.

Judging from the capacity of the PC market, Brazil has surpassed Japan to become the world's third-largest PC market, and the competition among various manufacturers in Brazil will be even fiercer.

Acquisition details

Huang Weiming further disclosed the details of the acquisition of CCE. Lenovo spent 300 million reais (local currency in Brazil), which was approximately 150 million U.S. dollars, including 225 million reais for cash payments and 75 million reais for stocks. . After the acquisition, Lenovo will hold a 100% stake in CCE.

The Brazilian CCE company has a history of more than 40 years. In 2011, the shipment of PCs was more than 700,000 units. In addition to PCs, there are smartphones, TVs and other services. Lenovo also hopes to expand its PC+ market through acquisitions.

In terms of operations, all CCE executives will be retained and the CEO of CCE will report to the general manager of Lenovo Brazil.

Huang Weiming said that the CCE brand will be retained and the sales team will be retained. The integration of Lenovo and CCE will start from the back end of purchasing, services and so on.

Acquisition of the Brazilian market

In addition to directly gaining share, supply chain channels, brands, and manufacturing are the reasons for Lenovo's acquisition, and the purpose is undoubtedly for the rapidly growing Brazilian market.

Huang Weiming said that in Brazil, Lenovo’s main product is still IBM’s heritage, ie, enterprise-level business, and consumer business has just entered in recent years. At present, the middle category market of consumer business is growing very fast and has very good business opportunities.

At the same time, the penetration rate of Brazilian PCs is only 21%, while that of mature countries is more than 80%. There is still a long-term development potential here. With the Brazil World Cup two years later, Lenovo also hopes to lay it out in advance.

From the data point of view, Lenovo's acquisition of the CCE, the global PC shipments are still less than HP, but almost the same.

In addition, the Brazilian market has a certain degree of particularity. The local government imposes high import taxes on many products. Lenovo can only choose to build factories locally. A month ago, when Lenovo had not confirmed the acquisition of CCE, it decided to set up its own production line in Brazil in advance.

Acquisitions bring share and visibility

In 2011, Lenovo acquired the NEC PC business and the German Medion business. In addition to this year's acquisition of EMC's network storage subsidiary and CCE, the acquisition has become an important way for Lenovo to expand.

The result is also encouraging Lenovo to continue the acquisition. One year after the acquisition of NEC, Lenovo became the largest PC maker in Japan. After the acquisition of Medion, Lenovo’s share in Western Europe rose by two positions. In the IDC data, Lenovo’s global PC market share has also rapidly increased in the past year. From the previous fourth to the current second, the gap with the first HP has continued to narrow.

Huang Weiming said that while gaining share, Lenovo has also increased the localization characteristics of its brand's popularity. The share of Lenovo brand has increased in Japan and Germany, and the integrated NEC and Medion have also grown.

After the acquisition of the IBM PC Division, Lenovo began a globalized landscape. At the same time, Lenovo, which attaches great importance to corporate culture, is also trying to make a lot of foreign high-level management solutions to what is "ownership."

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