Lenovo, the world’s third largest maker of smartphones, Thursday announced the completion of its acquisition of Motorola Mobility, gaining a larger foothold in the US and other developed markets. Rick Osterloh, a Motorola veteran, will remain president and chief operating officer of Motorola, meanwhile Liu Jun, Lenovo executive vice president and president of Lenovo’s Mobile Business Group, becomes chairman of the Motorola Management Board.
The leading Chinese PC and smartphone maker is paying $660 million in cash and shares worth $750 million to Google and the rest will be paid in the form of a three-year promissory note, in a transaction that is worth USD$2.91 billion.
Yang Yuanqing, chairman and CEO, Lenovo
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 U.S. and other mature markets, great carrier relationships, an iconic brand, a strong IP portfolio and an incredibly talented team. This is a winning combination.
Larry Page, CEO, Google
Motorola is in great hands with Lenovo, a company that’s all-in on making great devices.