Motorola has annnounced that Google has agreed to sell its Mobility smartphone business to Lenovo for $2.91 billion (£1.76 billion).
The deal is set to be the largest ever overseas acquisition by a Chinese company in the tech industry, although Google will maintain ownership of the patent portfolio of Motorola Mobility. The deal made will see Lenovo take ownership of the MOTOROLA brand and its portfolio of smartphones. The Chinese manufacturer will also receive 2,000 patent assests. Google purchased Motorola for $12.5 billion in May 2012.
Earlier this month Mobile reported that the smartphone maker was continuing its comeback in the UK market with the launch of the Moto X on 1 February.
Motorola Mobility CEO, Dennis Woodside, said: ‘As part of Lenovo, Motorola Mobility will have a rapid path to achieving our goal of reaching the next 100 million people with the mobile Internet. With the recent launches of Moto X and Moto G, we have tremendous momentum right now and Lenovo’s hardware expertise and global reach will only help to accelerate this.’
Google CEO, Larry Page, said: ‘Lenovo has the expertise and track record to scale Motorola Mobility into a major player within the Android ecosystem. This move will enable Google to devote our energy to driving innovation across the Android ecosystem, for the benefit of smartphone users everywhere.’
Chairman and CEO of Lenovo, Yang Yuanqing, added: ‘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. We are confident that we can bring together the best of both companies to deliver products customers will love and a strong, growing business. Lenovo has a proven track record of successfully embracing and strengthening great brands – as we did with IBM’s Think brand – and smoothly and efficiently integrating companies around-the-world. I am confident we will be successful with this process, and that our companies will not only maintain our current momentum in the market, but also build a strong foundation for the future.’