In the second acquisition within a week, Lenovo has entered into an agreement with Google to acquire Motorola Mobility for $2.91 billion. It will give them access to the brand name, trademark portfolio, intellectual property and around 2000 patents. Lenovo has plunged into taking over IBM’s low end server business for $2.3 billion.
However, Google will retain the majority of patents it acquired from Motorola when it was acquired in 2011.
The deal is as follows – $660 million in cash, $750 million in Lenovo shares and $1.5 billion promissory note for a period of three years.
Lenovo chairman and CEO Yang Yuanqing quoted to the press , “The acquisition of such an iconic brand, innovative product portfolio and incredibly talented global team will immediately make Lenovo a strong global competitor in smartphones,”
“We will immediately have the opportunity to become a strong global player in the fast-growing mobile space.”