Lenovo will take a 51% stake in NEC Lenovo Japan Group, with NEC taking the remaining 49%. NEC will receive $175m (£110m) through an issue of Lenovo shares.
In a joint statement, the two companies said the deal would give them "enhanced product portfolios and expanded distribution channels".
Under the terms of the deal, Hideyo Takasu, currently president of NEC Personal Products, will become president and chief executive of the new venture. Roderick Lappin, currently president of Lenovo Japan, will become executive chairman. The two brand names will continue to be used.
Lenovo and NEC have also agreed to discuss further co-operation in other areas, including selling PCs and developing new devices such as tablets. The deal is expected to be signed by 30 June.
"The agreement with NEC is a perfect fit for our strategy," said Lenovo's chief executive Yang Yuanqing.
"It reinforces our commitment to our core PC business while, at the same time, providing important new opportunities for growth in Japan."
Nobuhiro Endo, president of NEC, said: "Lenovo is the right partner at the right time for NEC, and we believe that we are creating a strategic relationship today that will benefit NEC and our customers for many years to come".
Both brands are stocked at Okobe.co.uk. Please click the following links for the full ranges currently available at Okobe.co.uk:
NEC Range at Okobe.co.uk
Lenovo Range at Okobe.co.uk
