China's Lenovo Reportedly Buys American Cloud Company

Chinese technology group Lenovo acquired the U.S.-headquartered cloud technology company Stoneware, which provides cloud computing products for various devices and ecosystems.

Chen Xudong, senior vice president for Lenovo Group, revealed the news on his microblog and he did not disclose any financial details.

Lenovo currently focuses on its greater cloud computing business, which can help users gain remote data or control various devices with a single computer. As a part of its cloud computing strategy, Lenovo signed an agreement with EMC in August 2012, and the two parties will cooperate in development and sales of network storage devices.

Stoneware is the first software company acquired by Lenovo. With this deal, Lenovo expects to connect its laptops and PCs with other devices such as tablets and TVs. Meanwhile, the transaction may further enhance Lenovo's share in the business PC market, accelerate its expansion into more profitable sectors, and help enterprise customers build and maintain their networks.

Headquartered in Salt Lake City, Utah, Stoneware has 67 employees and the company provides cloud computing products to public and educational customers. Their products help users realize remote sharing or storing data. Stoneware also provides teacher management systems, helping teachers manage computers of their students, assign homework, and monitor the contents visited by students.

With the acquisition, Lenovo hopes to increase the sales volume of Stoneware's products via its global sales channels; meanwhile, the company will depend on Stoneware's technologies to improve its performance in the consumer sector.

The deal is expected to be completed at the end of 2012 and no employee layoff is involved.

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