Investments, News

Lenovo to buy Motorola from Google for USD 2.91 Bn

motorolaLenovo has reportedly signed a deal with Google to acquire the Motorola Mobility smartphone business for USD 2.91 Bn including USD 1.41 Bn paid at close. This comprised of USD 660 Mn in cash and USD 750 Mn in Lenovo ordinary shares (subject to a share cap/floor). The remaining USD 1.5 Bn will be paid in the form of a three-year promissory note.

Motorola Mobility enjoys outstanding brand awareness around the world, and is currently the #3 Android smartphone manufacturer in the U.S. and #3 manufacturer overall in Latin America.

Although, Google will maintain the ownership of the vast majority of the Motorola Mobility patent portfolio, including current patent applications and invention disclosures. But, as part of its ongoing relationship with Google, Lenovo will receive a license to this 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. Also, the company will take the ownership of the future Motorola Mobility product roadmap along with the existing products.

With this agreement it aims at strengthening its position in the smartphone market. In addition, it will gain a strong market presence in North America and Latin America, as well as a foothold in Western Europe, to complement its fast-growing smartphone business in emerging markets around the world.

“We are confident that we can bring together the best of both companies to deliver products customers will love and a strong, growing business. 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.

As per Google CEO, Larry Page, 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”, he added.

Previously, in 2005, Lenovo has acquired IBM’s PC business and its legendary PC brand. At present, it is serving customers in more than 160 countries.

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