"We will continue to use acquisitions as a means to grow ... Whenever there is a good opportunity, we will grasp it," says Lenovo (LNVGY, LNVGF) CEO Yang Yuanqing. The remarks come with the ink barely dry on Lenovo's $2.9B deal to acquire Motorola Mobility from Google, and its $2.3B deal to buy IBM's x86 server unit.
Lenovo will still have $2B in cash after accounting for the cash portions of the Motorola/IBM deals, and is thinking of taking advantage of low interest rates to raise more capital. With the company about to become a major server vendor, Lenovo could go shopping for businesses in complementary enterprise markets (storage, networking hardware, IT services, etc.).
Yang also insists Lenovo will try to make Motorola profitable by leveraging its economies of scale, rather than further trimming headcount. Motorola has already seen massive job cuts in the Google era.