Global technology leader Lenovo Group and Alat, a Saudi Public Investment Fund (PIF) company, have successfully finalized a $2 billion investment deal, facilitated by three-year zero-coupon convertible bonds. This follows the strategic collaboration announced in May 2024, with the deal receiving all necessary shareholder and regulatory approvals.
The partnership aims to accelerate Lenovo’s transformation, expand its global presence, and diversify its manufacturing footprint. Through this collaboration, Lenovo plans to build on its current Middle East and Africa (MEA) business, seize growth opportunities in the region, and bring its world-class supply chain, technology, and manufacturing capabilities to Saudi Arabia, thereby supporting the creation of thousands of new jobs.
As part of the agreement, Lenovo will establish its regional Middle East and Africa headquarters (RHQ) in Riyadh, along with a sustainable manufacturing facility in Saudi Arabia. This facility, set to begin production by 2026, will manufacture millions of PCs and servers annually, utilizing local research and development (R&D) teams to produce fully end-to-end “Saudi Made” products. The facility will be part of Lenovo’s global manufacturing network, which includes over 30 sites across countries such as Argentina, Brazil, China, Germany, Hungary, India, Japan, Mexico, and the US.
Additionally, Alat and Lenovo have formed a business development partnership, capitalizing on Alat’s deep regional connections and market insights. The RHQ will also focus on expanding retail space in the kingdom, investing in R&D, and strengthening marketing and strategic partnerships across Saudi Arabia and the broader MEA region.
Yuanqing Yang, Chairman and CEO of Lenovo, expressed excitement about the partnership, emphasizing that it provides Lenovo with significant resources to accelerate its growth, particularly in line with Saudi Arabia’s Vision 2030 goals for economic diversification, industrial development, and job creation.
Amit Midha, CEO of Alat, also praised the collaboration, highlighting the potential for Lenovo’s continued growth in the MEA region through the establishment of the regional headquarters and manufacturing hub powered by clean energy.
In addition to this deal, Lenovo previously announced a $1.15 billion Warrant Issuance to further bolster its growth, with 43% of the warrants subscribed by Lenovo’s leadership, demonstrating strong confidence in the company’s ongoing transformation and future prospects.
Lenovo, a $57 billion revenue global technology powerhouse, is ranked #248 in the Fortune Global 500 and serves millions of customers across 180 markets worldwide.
