Three private-equity firms -- Texas Pacific Group, General Atlantic LLC and the Newbridge Capital LLC affiliate of Texas Pacific and Blum Capital Partners -- are about to acquire stakes in China’s Lenovo Group Ltd.
The firms are investing about $350 million, while Texas Pacific contribution makes $200 million, General Atlantic $100 million and Newbridge Capital $50 million, according to the people familiar with the matter.
They disclosed their plans to make investments in Lenovo followed hearings in Washington over International Business Machines Corp.’s $1.25 billion sale of its personal-computer business to the Chinese computer maker.
The form of the deal couldn’t be defined.
Lenovo’s newest investors will conduct the company expertise in helping take the IBM PC business from its former parent. In addition, they will play a significant role in blending two different cultures, one American and one Chinese. Lenovo couldn’t immediately be reached to comment. A spokesman for General Atlantic and a spokesman for Texas Pacific and Newbridge refused to comment.
The stake in Lenovo marks the first time Texas Pacific has entered Asian market directly. Given Texas Pacific’s familiarity with the IBM business, it made sense for the firm to be actively involved with its Newbridge affiliate in the deal, the people familiar with the matter say.
General Atlantic, meanwhile, has a strong position in China through its Beijing office and has long been engaged in making investments in technology in Asia.