Lenovo is expanding into the third-largest PC market with the acquisition of CCE.
On Wednesday Lenovo Group, currently the world's second largest and fastest growing major PC manufacturer, announced the acquisition of CCE, Brazil's biggest PC maker.
According to Lenovo, this acquisition will enable Lenovo to expand into the world's third-largest PC market – Brazil – thus enriching the area with its own portfolio of PCs, tablets, smartphones and TVs. Meanwhile, the agreement will align CCE with a global partner that will boost its overall strength, innovation capability, four-screen product portfolio and supply chain resources.
"Brazilian customers will clearly and immediately benefit from better, even more competitively priced products, coming faster to market from a provider with an excellent combined heritage: a strong understanding of the Brazilian consumer on one hand and a deep innovation capability, unmatched legacy of quality, and global supply chain on the other," Lenovo stated.
Lenovo said CCE shareholders will be paid approximately 300 million Brazilian Reais, in a combination of cash and stock, for 100-percent of the company. Lenovo will retain CCE’s management team, including its founder and CEO Roberto Sverner, in the combined company. CCE’s management will work closely with Lenovo’s new country leadership to drive both businesses.
"This move more than doubles our PC market share in Brazil, one of the world’s fastest-growing and most important technology markets. It not only helps Lenovo rapidly expand its leadership here, but it also lays a foundation for our future PC+ vision," said Yuanqing Yang, chairman and CEO, Lenovo Group. "CCE is an excellent fit with its four screen product portfolio and a valuable manufacturing base in Brazil."
Lenovo added that the normal flow of business will not be interrupted due to the acquisition, and that current product brand names of CCE and Lenovo will continue, while leveraging each other’s strengths. There's also no indication that there will be any workforce restructurings as a result of the acquisition either – it's all business as usual to some degree.
The acquisition is subject to customary closing procedures and is expected to close in the first quarter of 2013.
CCE's legal names are actually DIGIBRÁS INDÚSTRIA DO BRASIL S.A., DIGIBOARD ELETRÔNICA DA AMAZÔNIA LTDA. and DUAL MIX COMÉRCIO DE ELETRÔNICOS LTDA.