Lenovo Acquires Stoneware to Expand Secure Cloud Computing

Lenovo grows its technology portfolio and advances its PC Plus strategy
Stoneware brings substantial experience and expertise in secure cloud computing

RESEARCH TRIANGLE PARK, N.C. & CARMEL, Ind.--(BUSINESS WIRE)--Lenovo (HKSE: 0992) (PINK SHEETS: LNVGY) today announced the acquisition of Stoneware Inc., to enhance and expand its cloud computing solutions, a key component of Lenovo’s product portfolio. Stoneware has built a strong, profitable, and growing business by delivering innovative software technologies, which are helping people and organizations make the complex environment of cloud computing that much simpler.

“We are pleased to be joining forces with Lenovo”

As a result of this acquisition, Lenovo will add significant new technologies and accelerate its capabilities for both commercial and consumer cloud offerings, particularly the ability to provide secure content across multiple devices in education and government.

Lenovo’s product portfolio will benefit from the experience and expertise of the Stoneware team. Stoneware already has several strong, highly innovative cloud products – including webNetwork and LanSchool – that serve millions of users primarily in education and the public sector. Lenovo will help extend the reach of these products as well as new offerings through its global reach as the world’s second largest PC maker and number one commercial laptop company. Lenovo will also help develop the opportunity to extend this technology, beyond the current strongholds that Stoneware has in government and in education, into more consumer-focused offerings over time.

“Adding Stoneware cloud computing into the Lenovo line up presents a significant opportunity to leverage their success, and enhance our PC Plus offerings, all to the benefit of our customers,“ said Peter Hortensius, senior vice president, and president, Product Group, Lenovo. “We have a history of innovation and embracing new technologies, and the talented team at Stoneware will fit in perfectly with our long-term strategy."

With today’s typical technology user carrying multiple devices, the PC Plus era is here, and Lenovo is aggressively expanding its product offerings and capabilities to help people and businesses connect across any device to the content and communities that matter most to them. Customers simply want a better way to connect their PC with their tablet with their smartphone, and with Stoneware, Lenovo aims to help them get there.

The purchase of Stoneware is critical to Lenovo’s broader PC Plus strategy. As a recognized leader in PCs, with the momentum of an expanding tablet and smartphone business and a newly formed joint venture with EMC, Lenovo aims to offer end-to-end secure solutions to business customers and compelling cloud-based technology to consumers.

“We are pleased to be joining forces with Lenovo,” said Rick German, CEO, Stoneware. “Lenovo is one of the largest and fastest growing technology companies in the world and for Stoneware, a small company with roots in the heartland of the United States, we are delighted to be given the opportunity to deliver real benefit to customers on a global stage.”

While financial terms of the deal were not disclosed, the acquisition is not material to Lenovo’s earnings. Stoneware has 67 employees, located in either Indiana or Salt Lake City, Utah. As part of this agreement, it is expected that all U.S.-based Stoneware employees will join Lenovo, and that there will be no job losses as a result of today’s announcement.

The acquisition is expected to be completed by the end of 2012 and in the coming weeks the Stoneware team will be fully integrated into Lenovo. The Stoneware team will remain in Indiana and Utah and will continue to sell both webNetwork and LanSchool while serving customers and partners with the same level of dedication and excellence.

About Lenovo

Lenovo (HKSE: 0992) (PINK SHEETS: LNVGY) is a $US30 billion personal technology company and the world’s second largest PC company, serving customers in more than 160 countries. Dedicated to building exceptionally engineered PCs and mobile internet devices, Lenovo’s business is built on product innovation, a highly efficient global supply chain and strong strategic execution. Formed by Lenovo Group’s acquisition of the former IBM Personal Computing Division, the Company develops, manufactures and markets reliable, high-quality, secure and easy-to-use technology products and services. Its product lines include legendary Think-branded commercial PCs and Idea-branded consumer PCs, as well as servers, workstations, and a family of mobile internet devices, including tablets and smart phones. Lenovo has major research centers in Yamato, Japan; Beijing, Shanghai and Shenzhen, China; and Raleigh, North Carolina. For more information, see www.lenovo.com.