Lenovo (00992) announced the acquisition of Infinidat, providing strong support for high-end storage.

On January 17th, LENOVO GROUP (00992) announced that its subsidiary has reached a final agreement to acquire global high-end enterprise storage solution provider Infinidat. As part of Lenovo's business development strategy, this acquisition aims to introduce differentiated technology solutions to the market, further strengthen Lenovo's product portfolio in the global enterprise storage market, and demonstrate its commitment to providing innovative storage solutions to meet the evolving needs of modern data centers. With Infinidat's strong storage solutions and R&D capabilities, this transaction will create strategic synergies with LENOVO GROUP's infrastructure solutions business and enterprise storage capabilities: Access to enterprise storage products and innovative technology Infinidat can provide high-performance, mission-critical enterprise storage solutions for scalable, network-resilient data management, and has strong proprietary software development capabilities that complement Lenovo's innovative R&D capabilities. Expand Lenovo's storage solution portfolio to cover the high-end enterprise storage sector This transaction will further solidify Lenovo's position in the entry-level and mid-range enterprise storage markets, and expand its comprehensive product portfolio, including flash and hybrid arrays, hyper-converged infrastructure (HCI), software-defined storage (SDS), and Lenovo TruScale data management solutions. Drive sustainable profitable growth for Lenovo's storage business Combining Infinidat with Lenovo's existing global infrastructure business, customer relationship network, and the scale and capability of its global supply chain, not only creates new opportunities for high-end enterprise storage products, but also opens up new revenue growth areas for Lenovo's storage business. Analysis indicates that with this acquisition, Infinidat fills a gap in Lenovo's product portfolio. Lenovo has long been a strong player in the entry-level storage market. One way to rank storage vendors is by price range, and in the low-end market (under $25,000), Lenovo currently ranks first. In fact, the company dominates in the storage sector and is among the top five storage vendors overall according to industry rankings. However, profitability and profit margins are difficult to control when selling in the entry-level market. Lenovo's acquisition of Infinidat directly addresses this issue, as Infinidat focuses on solutions for large enterprises, which complements Lenovo's ThinkSystem product portfolio. In fact, Infinidat's product portfolio can fill Lenovo's high-end storage gap, making the company more attractive as a storage provider for enterprise IT organizations, and also providing strong technical support for Lenovo in high-end AI servers.