Lenovo has announced on Thursday, that the acquisition of Motorola Mobility, including the Moto and the Droid series is now a done deal. As of today, Motorola is a Lenovo company on paper, this makes Lenovo the third-largest mobile manufacturer in the world, gaining more ground in the US, EU and other major markets. Motorola will still have its headquarters in Chicago, while Lenovo adds 3,500 employees to its portfolio, 2,800 of which, only in the United States.
“Today we achieved a historic milestone for Lenovo and for Motorola – and together we are ready to compete, grow and win in the global smartphone market. By building a strong number three and a credible challenger to the top two in smartphones, we will give the market something it has needed: choice, competition and a new spark of innovation,” said Yang Yuanqing, chairman and CEO, Lenovo.
Appointed CEO and COO back in April (2014), Rick Osterloh will remain Motorola’s president and chief operating officer, while Mr. Liu Jun, Lenovo executive vice president and president of Lenovo’s Mobile Business Group, is now chairman of the Motorola Management Board.
“Motorola is in great hands with Lenovo, a company that’s all-in on making great devices,” said Larry Page, CEO, Google.
For this deal Lenovo will pay Google $2.91 billion ($660 million in cash, $750 million in bonds). The remaining $1.5 billion will be paid to Google Inc in the next three years in the form of promissory note.