IBM is exploring selling a chunk in its human resources division to a China-based technology company, according to people familiar with the matter.
IBM is seeking to sell the division, which manages IBM’s technology assets, to Shenzhen Sistema Co., the people said, asking not to be identified because the transaction is private.
The sale would be subject to approvals from the Securities and Exchange Commission, the people added.
IBM declined to comment.
In June, IBM announced it was seeking to expand its technology footprint to include technology that can help it better manage workers and more quickly respond to global disruptions, like natural disasters, pandemics and other events.
It said in a filing with the Securities & Exchange Commission that it is looking to acquire technology and services for human resources and business processes and systems that help manage and process human resources.
IBM also said in the filing that it was evaluating opportunities to acquire technologies to enhance its operations and services in China.
IBM has been building out its IT capabilities in China, including using cloud computing and artificial intelligence to improve its global operations and its workforce.
The company also is looking at selling its business in the country, according the people.
The moves follow a string of acquisitions in recent years by Chinese companies, including Xiaomi and Lenovo.
IBM said in its first-quarter earnings report in March that it had made “significant progress” on acquisitions and plans to add about 1,000 jobs in China by 2020.
It is still seeking to raise funds to fund its expansion plans in China and in the U.S., and its latest acquisition, the IBM Global Institute, is a $25 billion venture capital fund, with an estimated value of $50 billion.
The deal with Sistessa would help accelerate IBM’s efforts to expand in China in the coming years, according one of the people, who asked not to speak on the record because the acquisition is private and is not expected to be approved.