News

Lenovo completes Motorola Mobility acquisition

Lenovo-Buys-Motorola-003Lenovo’s acquisition of Motorola Mobility from Google for $2.91 billion has been completed.
The acquisition of the Motorola brand and Motorola’s portfolio of smartphones such as Moto X, Moto G, Moto E and the DROIDTM series, as well as the future Motorola product roadmap, positions Lenovo as the world’s third largest maker of smartphones.

Lenovo will operate Motorola as a wholly-owned subsidiary. Motorola’s headquarters will remain in Chicago. With the acquisition, Lenovo welcomes the addition of a company with nearly 3500 employees.

Lenovo chairman and CEO, Yang Yuanqing, said, “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.”

Google will maintain ownership of a majority of the Motorola Mobility patent portfolio, while Motorola will receive a license to this portfolio of patents and other intellectual property. Motorola will retain over 2000 patent assets and a large number of patent cross-license agreements, as well as the Motorola Mobility brand and trademark portfolio.

The total purchase price at close was approximately $US2.91 billion (subject to certain post-close adjustments), including approximately $US660 million in cash and 519,107,215 newly issued ordinary shares of Lenovo stock, with an aggregate value of $US750 million, representing about 4.7 per cent of Lenovo’s shares outstanding, which were transferred to Google at close.

The remaining $US1.5 billion will be paid to Google by Lenovo in the form of a three-year promissory note. A separate cash compensation of approximately $US228 million was paid by Lenovo to Google primarily for the cash and working capital held by Motorola at the time of close.

 

Originally published on ARN. Click here to read the original story. Reprinted with permission from IDG.net. Story copyright 2017 International Data Group. All rights reserved.
Previous ArticleNext Article

Leave a Reply

GET TAHAWUL TECH IN YOUR INBOX

The free newsletter covering the top industry headlines

Send this to a friend