Lenovo has acquired a controlling stake in Fuitsu's PC business in a JPY 17.85 billion-plus deal.

The deal, which is expected to close in the first quarter of FY2018, sees Fujitsu, Lenovo and the Development Bank of Japan becoming joint venture partners to research, develop, design, manufacture and sell client computing devices for the global PC market.

Lenovo is taking a 51% stake in Fujitsu's Client Computing Limited – which was spun off from Fujitsu last year – with the Development Bank of Japan taking a 5% stake.

The joint venture will leverage Fujitsu's capabilities in global sales, customer support, R-D and manufactirng, along with Lenovo's global scale and presence.

“As Lenovo continues to pursue high-growth opportunities and new partnerships, particularly in key markets, this new joint venture will strengthen Lenovo's PC leadership worldwide and help support continued profitable growth,” Lenovo says.

Lenovo lost its number one spot in the global PC market to HP earlier this year, with Gartner noting the Chinese vendor logged its eigtht decline in 10 quarters for Q3, slipping 1.5%, while HP was up 4.4%. Gartner figures have Lenovo just behind HP at 21.4% market share, versus HP's 21.8%.

IDC's Asia Pacific figures also have Lenovo trailing HP for Q3.

The new company will continue to be known as Fujitsu Client Computing and the products will continue to be distributed and sold under the Fujitsu brand name.

The companies say Fujitsu will continue to provide corporate customers with the products directly or indirectly through its channel partner network, and will provide after-sales support and services. FCCL will handle the Japanese consumer market directly or indirectly through mass retailers.

The announcement of the deal came as Lenovo posted a 5% year on year increase in revenue to US$11.8 billion for Q2. However, the company recorded a net loss before tax of US$34 million, with profit for the period plunging 69% to US$99 million – down from $320 million a year earlier.

Lenvono says its PC/smart devices group was profitable in all geographies.