Chinese PC maker Lenovo has completed the acquisition of US handset manufacturer Motorola Mobility from internet giant Google for US$2.91bn.
The purchase price included US$660m in cash and a US$750m issue of new shares, representing about 4.7% of…
Chinese PC maker Lenovo has completed the acquisition of US handset manufacturer Motorola Mobility from internet giant Google for US$2.91bn.
The purchase price included US$660m in cash and a US$750m issue of new shares, representing about 4.7% of Lenovo’s outstanding shares, which have been transferred to Google.
The remaining US$1.5bn will be paid by Lenovo to Google as a three-year promissory note.
The Chinese company claims that, as a result of the deal, it will rank as the world’s third-largest smartphone maker.
Motorola will operate as Lenovo’s fully-owned subsidiary and will continue to be headquartered in Chicago. Liu Jun, Lenovo’s executive vice president, will become Motorola’s chairman, while Rick Osterloh will continue to serve as Motorola’s president and COO.
Google will retain ownership of most of Motorola Mobility patents, while Motorola will be granted a licence to such portfolio and other intellectual property.
Google agreed to sell Motorola to Lenovo at the end of January, having paid US$12.5bn for the handset maker in late 2011.
