Lenovo sets up joint venture with PCCW to propel service transformation

People visit the booth of Lenovo at the Retail's Big Show 2020 in New York, the United States, on Jan. 12, 2020. (Xinhua/Wang Ying)

Lenovo (00992.HK) has signed an agreement with PCCW Limited (00008.HK), a leading provider of IT solutions in the Asia-Pacific region, to set up a joint venture, reported Shanghai Securities News on Tuesday.

The joint venture, named PCCW Lenovo Technology Solutions Limited (PLTS) and established to provide technology solutions in the Asia-Pacific region, will leverage the combined strengths of Lenovo and PCCW to create value for their customers, employees, and shareholders.

The transaction was registered at 613.6 million U.S. dollars approximately, comprising 513.6 million U.S. dollars in cash and 100 million U.S. dollars worth of Lenovo shares.

Upon completion of the transaction, Lenovo will hold 84 percent of PLTS shares.

Huang Jianheng, executive vice president of Lenovo and president of Solution Services Business, said that this partnership would propel Lenovo's transformation from a provider of intelligent devices and infrastructure to a globally leading provider of solution services.