New York, Jan 24: US technology big IBM Thursday declared a definitive agreement to sell its low-end server business to China’s Lenovo for roughly $2.3 billion.

IBM can receive $2 billion in money and the remainder of the payment in Lenovo stock, the US company said in a press release.

In the deal, Lenovo plans to acquire IBM’s x86 server business, that “includes System x, BladeCenter and Flex System blade servers and switches, x86-based Flex integrated systems, NeXtScale and iDataPlex servers and associated software, blade networking and maintenance operations,” IBM said.

IBM said it’ll retain different high-end server, storage and mainframe business lines, as well as its PureApplication and PureData appliances.

Big Blue conjointly can still develop and evolve its Windows and Linux software portfolio for the x86 platform, the company said.

“This divestiture permits IBM to focus on system and software innovations that bring new sorts of worth to strategic areas of our business, like cognitive computing, massive knowledge and cloud,” Steve Mills, IBM software and Systems’ senior vice president and group govt, was quoted as saying.

The dealings is subject to regulatory approval.

Approximately 7,500 IBM employees are expected to be offered employment by Lenovo as a part of the deal, that is that the latest step in a account that began in 2005 once the Chinese company acquired IBM’s ThinkPad computer business.

Lenovo chairman and CEO yang Yuanging said, “With the proper strategy, nice execution, continued  innovation and a clear commitment to the x86 industry, we are assured that we can grow this business with success for the long, even as we’ve through with our worldwide computer business.”