Lenovo today announced that it has completed its acquisition of Motorola from Google.
Lenovo paid $2.91 billion for Motorola’s handset unit. The purchase price included approximately $660 million in cash and about 520 million newly issued ordinary 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, and a separate cash compensation of $228 million was by Lenovo to Google for cash and working capital held by Motorola at the time of the close.
Lenovo said that Google will maintain ownership of a majority of the Motorola Mobility patent portfolio, while Motorola will receive a license to the portfolio of patents and other intellectual property. Motorola will retain over 2,000 patent assets and a large number of patent cross-license agreements, as well as the Motorola Mobility brand and trademark portfolio.
Lenovo will operate Motorola as a wholly-owned subsidiary, and Motorola’s headquarters will remain in Chicago. Liu Jun, Lenovo executive vice president and president of Lenovo’s Mobile Business Group, is chairman of the Motorola Management Board. Rick Osterloh, a Motorola veteran, will remain president and chief operating officer of Motorola.
In a blog post, Osterloh said that Lenovo will help Motorola diversify its product portfolio and drive scale at a global level.
“Together we will go farther, faster. With an impressive portfolio of smartphones, wearables and PCs, our two companies will be uniquely positioned to push the boundaries of choice and value, and bring exciting new experiences to people everywhere,” Osterloh said. He added the Moto and DROID franchises will continue.