Lenovo targets European growth with Medion acquisition

Lenovo is back on the acquisition trail after agreeing to buy German computer company Medion. It is the Chinese company’s biggest acquisition since its landmark takeover of IBM in 2004 a deal that launched a thousand seminars on the “China outbound” phenomenon.

This deal is smaller and more strategic. Lenovo has agreed to buy 37% of Medion’s outstanding shares from Gerd Brachmann, the company’s founder and chief executive, at 13 $18.60 a share. Brachmann currently owns 60% of the company. Lenovo has also made an offer to buy anywhere from 15% to the full 40% of shares owned by the public, at the same price. This puts a price tag...