Lenovo, the world’s largest PC manufacturer, has resumed talks with IBM for its low-end server business, according to Bloomberg. The talks between the two companies broke down last year when Lenovo offered $2.5 billion while IBM was hoping for an offer closer to $4 billion.

The deal, if successful, would propel Lenovo into the roughly $50 billion server market. As of the third quarter of last year, IBM was the world’s second largest server vendor by revenue with a 23 percent market share.

Lenovo first entered the PC market by purchasing IBM’s PC division in 2004. This acquisition moved Lenovo from the world’s eighth largest PC maker to the third largest. After acquiring Germany’ Medion AG and NEC Corp’s PC division in Japan, Lenovo soon overtook Hewlett-Packard to become the world’s top PC manufacturer.

Posted by Catherine Matacic