Lenovo has completed the acquisition of Motorola Mobility from Google, positioningthe firm as the world’s third largest maker of smartphones with Motorola’s brands such as Moto X, Moto G, Moto E and the DROIDTM series.
According to Yang Yuanqing, chairman and CEO, Lenovo, the partnership makes it ready to compete, grow and win in the global smartphone market and give the market choice, competition and a new spark of innovation
“This partnership has always been a perfect fit. Lenovo has a clear strategy, great global scale, and proven operational excellence. Motorola brings a strong presence in the U.S. and other mature markets, great carrier relationships, an iconic brand, a strong IP portfolio and an incredibly talented team. This is a winning combination,” said Yang Yuanqing.
Lenovo will operate Motorola as a wholly-owned subsidiary. Motorola’s headquarters will remain in Chicago. Motorola has not said anything about axing off any of its employees as it joins Lenovo and its executives and staff will remain untouched.
Google will maintain ownership of a majority of the Motorola Mobility patent portfolio, while Motorola will receive a license to this rich portfolio of patents and other intellectual property. Motorola will retain over 2,000 patent assets and a large number of patent cross-license agreements, as well as the Motorola Mobility brand and trademark portfolio.
Lenovo paid approximately US$2.91 billion including approximately US$660 million in cash and 519,107,215 newly issued ordinary shares of Lenovo stock, with an aggregate value of US$750 million, representing about 4.7 percent of Lenovo’s shares outstanding, which were transferred to Google at close. The remaining US$1.5 billion will be paid to Google by Lenovo in the form of a three-year promissory note.