Lenovo has completed its acquisition of Google's Motorola Mobility unit, originally inked for $2.91 billion.
Announced on Thursday, the PC maker said the deal is now complete, and adding the Motorola brand to Lenovo's portfolio has positioned the company "as the world's third largest maker of smartphones."
Originally revealed in January this year, the Chinese firm snapped up Motorola Mobility for $2.91 billion — a steal considering Google purchased the unit for $12.5 billion only two years previously. When announced, Google said it would retain the "vast majority" of patents acquired when the tech giant bought Motorola Mobility, but Lenovo will have the option to license patents.
Now complete, the deal hands over Motorola Mobility smartphones including the Moto X, Moto G, Moto E and the DROIDTM series, as well as 2,000 leftover patents and a number of patent cross-license agreements.
Motorola will act as a wholly-owned subsidiary, retaining almost 3,500 employees, and will remain in headquartered in Chicago. Lenovo says it expects Motorola to become profitable in four to six quarters.
The total purchase price at close was approximately $2.91 billion, including approximately $660 million in cash and 519,107,215 shares of Lenovo stock, with an aggregate value of $750 million. The remaining $1.5 billion will be paid to Google by Lenovo in the form of a three-year promissory note.
Yang Yuanqing, chairman and CEO of Lenovo commented:
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.
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 US and other mature markets, great carrier relationships, an iconic brand, a strong IP portfolio and an incredibly talented team. This is a winning combination.
The acquisition was approved by authorities in the US, China, EU, Brazil and Mexico, as well as the Committee on Foreign Investment in the United States (CFIUS).