Lenovo Could Add to Acquisition Fever

Tough economic times pose special challenges, but they also pose opportunities for channel companies looking to enhance their competitive position in the IT industry. Chinese manufacturer, Lenovo, for example seems poised to enter acquisition mode.

The world's fourth largest manufacter behind Hewlett-Packard, Dell and Acer, Lenovo bought IBM's PC business in 2005 for $1.2 billion. Since then, its rivals have stepped up their channel strategies in an effort to boost sales and market position. Now, Lenovo's CFO is quoted in a Reuters news report as saying the company is prepaing to "take on another challenge." Lenovo has a stash of cash, and speculation is increasing that it might be interested in the computer business of Fujitsu-Siemens.

Economic slowdown or not, successful channel companies are likely to make strategic acquisitions to approve their competitive poitions. We've seen it this year with HP buying EDS; in the distribution business where foreign companies were purchased; and among VARs and integrators where competitors have been snapped up. Now it may be Lenovo's turn in the hardware business.

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