Fujitsu Limited, Lenovo Group Limited and Development Bank of Japan Inc. (DBJ) today announced a strategic collaboration that creates a joint venture between the three companies. The joint venture will focus on the research, development, design, manufacturing and sales of Client Computing Devices (CCD) for the global PC market.
Fujitsu will sell a 51% stake in its wholly owned subsidiary Fujitsu Client Computing Limited (FCC”) to Lenovo and a 5% stake to DBJ. After the transaction, FCCL will become a joint venture company (JV) owned by Fujitsu, Lenovo and DBJ and will continue to be known as Fujitsu Client Computing Limited.
1. Overview of the Strategic PC Cooperation
The transaction is expected to be closed in 1Q FY2018. The aggregate consideration received by Fujitsu will be JPY 28.0 billion (approximately HKD1.9 billion) that includes JPY 25.5 billion from Lenovo and JPY 2.5 billion from DBJ(1). After the transaction, Kuniaki Saito, the current representative director and president of FCCL, will assume the role of Representative Director and President of FCCL.
Capital structure after the transaction
After the JV is established, FCCL products will continue to be distributed and sold under the Fujitsu brand name. Fujitsu will continue to serve corporate customers worldwide directly or indirectly through its valued 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.
New Business structure of PC/ Tablet
Through this strategic collaboration, 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, highly-automated and efficient manufacturing and systems integration that meet customers’ demand. Furthermore, it will benefit from Lenovo’s global scale and presence.
Through investment in JV, DBJ will support FCCL’s sustainable growth and provide financial expertise from the perspective of a financial institution.
Fujitsu will continue to offer a high-quality, innovative, secure, and reliable Fujitsu branded CCD portfolio to its corporate customers worldwide, contributing to their digital transformation journey, and co-creating the workplace of the future by integrating PC offerings with Technology Solutions.