Lenovo Group Ltd, China's biggest maker of personal computers, plans to acquire Medion AG in a deal valuing the German computer and consumer-electronics company at $905.8 million (629.4 million).
The German firm is one of the very few companies that boasts a comprehensive portfolio of classic entertainment electronics as well as information technology products.
The proposed takeover would be Lenovo's biggest after it acquired International Business Machines Corporation's PC businessfor $1.75 billion in 2004, and the first takeover of a German company by a Chinese firm.
Medion, founded by its CEO Gerd Brachmann, a TV engineer, who was ranked 40 on the Forbes list of the richest Germans in 2004 with an estimated fortune of $1.4 billion, is a supplier of computer and multimedia products, including desktop PCs, notebooks, and displays, which accounts for about two-thirds of its sales.
Its consumer electronics segment comprising of digital cameras, DVD players, LCD TVs, navigation systems, MP3 players represents most of the remainder of sales. It also into developing and marketing of complementary telecommunications products and services, such as mobile phones, photo services, and music and software downloads.
The Essen-based company with 2010 turnover of €1.41 billion, operates primarily in Germany and Europe, but is ramping up marketing efforts in Asia and North America.