Lenovo buys Motorola Mobility Smartphone Division from Google for $2.91 billion.
In a press release issued today, Lenovo has announced that they have come to terms with Google Inc for the purchase of Motorola Mobility.
The press release states that Lenovo will pay $2.91 billion, including US$1.41 billion paid at close, comprised of US$660 million in cash and US$750 million in Lenovo ordinary shares (subject to a sharecap/floor). The remaining US$1.5 billion will be paid in the form of a three-year promissory note.
The acquisition of Motorola Mobility Smartphone division will strengthen Lenovo’s presence onto the smartphone segment, especially on the North and South American continent, as well as in Western Europe.
Google will still have ownership over the vast majority of Motorola’s patent portfolio, including current patent applications and invention disclosures. The deal also includes license for Lenovo over Motorola rich portfolio of patents and other intellectual property. Additionally Lenovo will receive over 2,000 patent assets, as well as the Motorola Mobility brand and trademark portfolio.
Below are the statements of all three CEO’s:
“The acquisition of such an iconic brand, innovative product portfolio and incredibly talented global team will immediately make Lenovo a strong global competitor in smartphones. We will immediately have the opportunity to become a strong global player in the fast-growing mobile space,” said Yang Yuanqing, chairman and CEO of Lenovo. “We are confident that we can bring together the best of both companies to deliver products customers will love and a strong, growing business. Lenovo has a proven track record of successfully embracing and strengthening great brands – as we did with IBM’s Think brand – and smoothly and efficiently integrating companies around-the-world. I am confident we will be successful with this process, and that our companies will not only maintain our current momentum in the market, but also build a strong foundation for the future.”
“Lenovo has the expertise and track record to scale Motorola Mobility into a major player within the Android ecosystem. This move will enable Google to devote our energy to driving innovation across the Android ecosystem, for the benefit of smartphone users everywhere,” said Larry Page, CEO, Google.
“As part of Lenovo, Motorola Mobility will have a rapid path to achieving our goal of reaching the next 100 million people with the mobile Internet. With the recent launches of Moto X and Moto G, we have tremendous momentum right now and Lenovo’s hardware expertise and global reach will only help to accelerate this,” said Dennis Woodside, CEO, Motorola Mobility.
Lenovo thinks this purchase will help sell over 100 million smartphone units world-wide in 2014 – 2015.