PCCW Lenovo Technology Solutions

History

2022: Lenovo and PCCW found a joint company

In mid-June 2022, Lenovo and Hong Kong conglomerate PCCW announced the creation of a joint company PCCW Lenovo Technology Solutions, which will offer comprehensive customer solutions that combine services, devices and digital infrastructure.

According to the partners, their joint project will be successful, given the growing demand for IT services. Lenovo invests $513.6 million in cash and $100 million in its shares in the joint venture. PCCW Solutions will receive 86,424,677 Lenovo shares. After the deal is completed, Lenovo will own an 84% stake in PCCW Lenovo Technology Solutions (PLTS), which consists of direct ownership of an 80% stake in the new company plus a 20% stake in PCCW Solutions holding company, PCCW Network Services.

Lenovo created a company to provide IT services and invested $614 million in it

{{quote 'Structural opportunities will come from digitalization and post-pandemic changes in the workplace. These changes will lead to an increase in demand for TruScale-as-a-Service's first-class surface, sustainable and vertical solutions. The company will continue to expand its service offering in this area while strengthening lines and cooperation with business partners. PCCW Solutions also offers managed services, application development and system integration, the company even runs a digital marketing agency, said PCCW Group CFO Wai Wong. }} According to The Register, the deal with PCCW Solutions certainly expands Lenovo's operations, which make it beyond the Asian markets that the company serves for June 2022. Since Lenovo's operations include outsourcing centers in Malaysia and the Philippines. If Lenovo's global sales staff can direct work to these centers, then the situation in the region's market may become better for the company.^[1]

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