Lenovo Doubles Market Share in Germany, Buys Medion

It appears that the many product launches at Computex 2011 aren't all that is happening on the IT market, as Lenovo appears to have taken yet another step forward in its plan to expand its business, this time by acquiring a certain German company.

Lenovo can very well be said to be one of, if not the fastest-growing IT company in the world.

With its activities increasing over the past year, the outfit has now taken yet another decision that will raise its status.

More specifically, it has decided to acquire Medion AG, a German supplier of PCs and consumer electronic products.

“This announcement will strengthen Medion's competitive marketplace position while maintaining the stability, flexibility and existing company structure in Essen. I am proud to become a major private investor in the world’s fastest growing PC company,” said Gerd Brachmann, founder and CEO of Medion.

“Along with my management team, I look forward to leveraging the synergies and ambitions that our companies share in growing our business together.”

Once the deal is complete, Lenovo's market share in that country will rise to 14%, more or less double that of today.

What's more, its overall share on the European market will rise as well, to 7.5 percent, placing it on the third place.

“This agreement represents another bold move for Lenovo to realize its long-term strategy. It will complement both Lenovo's core PC business and new businesses which are key areas for development. With their strong consumer sales, marketing, services and retail capabilities, Medion’s business is perfectly aligned with our consumer growth strategy in Western Europe,” said Yang Yuanqing, chief executive officer of Lenovo.

“Bringing together this ‘front end’ with Lenovo’s ‘back end’ manufacturing capability and supply chain will make both companies even more successful and competitive.,” he added Yuanqing.