Lenovo nods to $2.3 bln deal to buy IBM server business

The world's largest PC maker continues its journey of overseas expansion. Lenovo agreed to pay about 2.3 billion U.S. dollars to buy IBM's low-end server business.

Lenovo will pay over two billion dollars in cash and the rest with stock. The market is betting on Lenovo to boost its server sales to more clients, and to diversify the company's cashflow in addition to shrinking its PC sector.

Analysts say the deal will allow IBM to focus on its more profitable software and service businesses.

The two sides failed to reach an agreement on the deal last year due to pricing differences. Analysts say the sale may be spurred by IBM's recent drop in revenue, as the company reported a 23 percent decline in its China business on Tuesday.