Lenovo Acquiring Brazil's Biggest PC Maker

News
By Kevin Parrish
published

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.

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Kevin Parrish
21 Comments Comment from the forums
  • vitornob
    Here in Brazil some people consider CCE as a joke. Many people don't like at all this manufacturer.
    I heard jokes saying CCE means "Começou Comprando Errado" in english means, "started buying wrong". If this is true or not, I don't know, never had a CCE, I do hope Lenovo doesn't confirm this joke...
    Reply
  • punahou1
    I did not know that Brazil was the world's third largest PC market. Isn't it the largest "Third World" PC market?
    Reply
  • ricardok
    @punahou1: Brazil isn't a "third world" country. We are the 8th biggest economy in the world.. And yes, we are the third biggest PC market..
    From Wikipedia: The economy of Brazil is the world's sixth largest by nominal GDP and is expected to become fifth by the end of 2012.
    Read more here: https://www.cia.gov/library/publications/the-world-factbook/geos/br.html

    @Kevin: CCE isn't the biggest one. The biggest is "Positivo".. CCE is on the 2nd or even 3rd place of brazilian market.
    Reply
  • lolkillerbr
    punahou1I did not know that Brazil was the world's third largest PC market. Isn't it the largest "Third World" PC market?I've found some sources:


    As a Brazillian I wasn't that surprised, considering the economic growth the country experienced in the recent years and the larger average income the last census presented, which means that many people are taking the chance to refresh their gadget portfolio or, talking about the poorer families, buying their first computer.
    We do suffer with outrageously large taxes, thou, meaning that a 500 USD Vaio, for example, will here be sold for 1200 min. No wonder why we abroad -- I, for one, managed to sneak past our duties with 3000 USD hardware that would never, , be available for less than 6000 in the country. Once they sold Xbox 360's for 1600 USD.
    Most people here think this is the fair price of things, so I could only expect Lenovo beeing so happy about this.
    Reply
  • lolkillerbr
    lolkillerbrI've found some sources:As a Brazillian I wasn't that surprised, considering the economic growth the country experienced in the recent years and the larger average income the last census presented, which means that many people are taking the chance to refresh their gadget portfolio or, talking about the poorer families, buying their first computer.We do suffer with outrageously large taxes, thou, meaning that a 500 USD Vaio, for example, will here be sold for 1200 min. No wonder why we abroad -- I, for one, managed to sneak past our duties with 3000 USD hardware that would never, , be available for less than 6000 in the country. Once they sold Xbox 360's for 1600 USD.Most people here think this is the fair price of things, so I could only expect Lenovo beeing so happy about this.
    Sorry, the links were:

    Reply
  • lolkillerbr
    Sorry for my noberish, I seem not to be able to post any links, lol
    Reply
  • punahou1
    ricardok@punahou1: Brazil isn't a "third world" country. We are the 8th biggest economy in the world.. And yes, we are the third biggest PC market..From Wikipedia: The economy of Brazil is the world's sixth largest by nominal GDP and is expected to become fifth by the end of 2012.Read more here: https://www.cia.gov/library/publica os/br.html@Kevin: CCE isn't the biggest one. The biggest is "Positivo".. CCE is on the 2nd or even 3rd place of brazilian market.
    Thank you for the clarification. I should have been more specific as I was referencing the possibility of a geo-political reference error - not economic.
    Reply
  • A Bad Day
    Lenovo picked a good time, buy the company when Brazil is still growing strong.

    Now the question is, can they finish the job, or will the merge fall flat on the face?
    Reply
  • freggo
    punahou1I did not know that Brazil was the world's third largest PC market. Isn't it the largest "Third World" PC market?
    No, I am not Brazilian, but comparing Brazil with 3rd world nations is a sign that you are spending too much time reading the sports pages :-)
    Reply
  • darkavenger123
    freggoNo, I am not Brazilian, but comparing Brazil with 3rd world nations is a sign that you are spending too much time reading the sports pages :-)I am not Brazillian....but i do know BRIC....Brazil, Russia, India, China....biggest growing economy in the World now.

    Anyway, someone was saying XBOX360 sold for USD 1600!!!!??? Is it true?? I am so glad i stay in Malaysia...i can get for about same price as US+maybe another 40% top up...which doesn't looks so bad now....wheew!
    Reply