Fujitsu will sell 51 percent stake in its 100 percent subsidiary Fujitsu Client Computing to Lenovo and 5 percent stake to Development Bank of Japan (DBJ) to focus on the sale of Client Computing Devices (CCD) for the global PC market.
Fujitsu will receive JPY 28 billion or approximately HK$1.9 billion that includes JPY 25.5 billion from Lenovo and JPY 2.5 billion from DBJ.
FCCL will become a joint venture company owned by Fujitsu, Lenovo and DBJ and will continue to be known as Fujitsu Client Computing.
Kuniaki Saito, the current representative director and president of FCCL, will assume the role of representative director and president of Fujitsu Client Computing.
The joint venture company will continue distribute and sell FCCL products under the Fujitsu brand name.
Fujitsu will continue to serve corporate customers worldwide directly or indirectly through its channel partner network and provide the related after-sales support and services. FCCL will serve the consumer market in Japan either directly or indirectly through mass retailers and provide product support and services.
Fujitsu and Lenovo aim to drive further growth, scale and competitiveness in the PC businesses both in Japan and worldwide. The JV will leverage Fujitsu’s capabilities in global sales, customer support, R&D, automated and efficient manufacturing and systems integration.
Meanwhile, Lenovo said its PC and Smart Devices (PCSD) business group posted 7 percent growth in revenue to $8.4 billion for its second fiscal quarter ended September 30, 2017.
Lenovo said the average selling price for PCSD products was up six percent year-over-year, as Lenovo continued to focus on innovation, a higher-value product portfolio, and de-emphasize lower-value offerings.