Continuing on what we reported on last week, Lenovo’s joint venture agreement with Japanese electronics firm NEC has been confirmed. Lenovo will own 51% of the venture and will have the option to purchase the remaining shares of the join venture in 2016.
If NEC were to want to sell its 49% share, Lenovo could pay as much as $275 million, which seems like a hefty premium over the $175 million in stock that Lenovo paid to NEC.
The new group will be focused on PCs, as NEC leads Japan’s PC market with 20% of shipments compared to Lenovo’s 5%, however there was specific talk of collaboration on smartphone products using Google’s Android operating system.
This deal comes after NEC reported a deepening profit loss with the October-December quarter, coming in at a $323 million net loss.