Lenovo plans to acquire Medion, a German PC and electronics manufacturer, in a move to boost its market share in Western Europe.
The PC maker said today that it will pay 13 euros ($18.75) per share in cash for Medion. Medion closed at 10.97 euros in trading yesterday in Frankfurt. Lenovo cut a separate deal with Gerd Brachmann, CEO of Medion. Brachmann will sell 40 percent of Medion's outstanding shares to Lenovo at 13 euros a share and remain a major shareholder with 20 percent.
For China's Lenovo, the Medion purchase is all about market share. The deal will double its market share in Germany to more than 14 percent. Medion will also give Lenovo a 7.5 percent market share in Western Europe and hand the company mobile and consumer PC assets. Medion, based in Essen, has about 1,000 employees.
Read more of "Lenovo acquires Medion, plots Europe expansion" at ZDNet's Between the Lines.