Lenovo to Spend $1.3 Billion on Vista, Office

Chinese computer maker Lenovo has inked a deal with Microsoft to buy up to $1.3 billion worth of Windows Vista and Office 2007 for the next year. A similar deal valued at $1.2 billion was signed last year, which was considered a big step toward fighting piracy in China.

Lenovo has been battling Taiwan-based Acer to be the world's number-three computer manufacturer behind giants Hewlett-Packard and Dell. In turn, the company has been forging closer ties with Microsoft, including a joint research center announced last month to be built in China. Details of the new Microsoft agreement will be finalized soon, the companies said.