Lenovo has extended its joint venture with Japanese technology conglomerate NEC that sells PCs in Japan.
“The NEC joint venture has been extremely successful solidifying our No. 1 position in the world’s fourth-largest PC market where we have steadily grown market share and improved our performance, making Japan a profitable growth engine for Lenovo in the region,” Roderick Lappin, president and CEO of Lenovo NEC Holdings, said in a statement.
The initial joint venture agreement, forged in 2011, dramatically expanded Lenovo’s presence in Japan. Lenovo owns 51 percent of the joint venture.
The original deal was set to expire in 2016. The new agreement announced Tuesday extends the arrangement through 2018; it also calls for automatic annual renewals through June 30, 2026 unless either company provides written notice of plans to terminate the deal two years in advance.
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Lenovo, the No. 1 PC maker worldwide, is based in China and has a headquarters in Morrisville.
As part of the 2011 agreement, NEC spun off its PC business to the joint venture and received $175 million worth of Lenovo stock.