Lenovo to buy IBM's low-end server business for $2.3B

China’s Lenovo Group Ltd agreed to buy IBM Corp’s low-end server business for $2.3 billion. The purchase will be China’s biggest technology deal, according to a Reuters report.

The purchase is awaiting approval from the Committee on Foreign Investment in the U.S.

The deal allow IBM to focus on the company’s continuing shift toward more profitable services and software development.

The server business being sold produces low-cost x86 servers and will increase Lenovo’s share in the server market to 14 percent from 2 percent, according to Reuters.

Lenovo became world leader in personal computers in 2012 after purchasing IBM’s ThinkPad business.

IBM’s server business is the world’s second-largest, and Hewlett-Packard is in the top spot. Lenovo does not appear in the top five.

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