With Motorola Mobility, Lenovo can gain a strong market presence in North America and Latin America, as well as in Western Europe.
Motorola Mobility, maker of Moto X and
Moto G and the DROIDTM Ultra series, is not yet profitable following
its acquisition by Google.
But, business is business, Lenovo a strong global competitor in smartphones, with about 45.5 millions shipment volume, finds on this company a gateway to boost its strong smartphone business,
and growth in emerging markets around the world. This also means that, Lenovo could
gain a strong market presence in North America and Latin America, as well as a
foothold in Western Europe.
So, following the announcementof the restructuration of its Group which will consist as from April 2013, in four divisions: PC, Mobility, Enterprise and Cloud, Lenovo officially announces
having entered into a definitive
agreement under which Lenovo
plans to acquire the Motorola Mobility smartphone business.
The purchase price is approximately US$2.91 billion (subject to certain adjustments), including US$1.41 billion paid at close, comprised of US$660 million in cash and US$750 million in Lenovo ordinary shares (subject to a sharecap/floor). The remaining US$1.5 billion will be paid in the form of a three-year promissory note.
Connectikpeople.co recalls that, Lenovo, which in 2005 acquired IBM’s PC business and its legendary PC brand, is henceforth the ownership of Motorola Mobility, including the MOTOROLA brand and Motorola Mobility's portfolio of smartphones like the Moto X and Moto G and the DROIDTM Ultra series. In addition to current products, Lenovo will take ownership of the future Motorola Mobility product
roadmap.plans to acquire the Motorola Mobility smartphone business.
The purchase price is approximately US$2.91 billion (subject to certain adjustments), including US$1.41 billion paid at close, comprised of US$660 million in cash and US$750 million in Lenovo ordinary shares (subject to a sharecap/floor). The remaining US$1.5 billion will be paid in the form of a three-year promissory note.
Connectikpeople.co recalls that, Lenovo, which in 2005 acquired IBM’s PC business and its legendary PC brand, is henceforth the ownership of Motorola Mobility, including the MOTOROLA brand and Motorola Mobility's portfolio of smartphones like the Moto X and Moto G and the DROIDTM Ultra series. In addition to current products, Lenovo will take ownership of the future Motorola Mobility product
However, Google will maintain ownership of the vast majority of the Motorola Mobility patent portfolio, including current patent applications and invention disclosures. As part of its ongoing relationship with Google, Lenovo will receive a license to this rich portfolio of patents and other intellectual property. Additionally Lenovo will receive over 2,000 patent assets, as well as the Motorola Mobility brand and trademark portfolio.
About Lenovo
Lenovo is a US$34 billion personal technology company, the largest PC maker worldwide and an emerging PC Plus leader, serving customers in more than 160 countries. Dedicated to exceptionally engineered PCs and mobile internet devices, Lenovo’s business is built on product innovation, a highly-efficient global supply chain and strong strategic execution. Formed by Lenovo Group’s acquisition of the former IBM Personal Computing Division, the Company develops, manufactures and markets reliable, high-quality, secure and easy-to-use technology products and services. Its product lines include legendary Think-branded commercial PCs and Idea-branded consumer PCs, as well as servers, workstations, and a family of mobile internet devices, including tablets and smart phones. Lenovo, a global Fortune 500 company, has major research centers in Yamato, Japan; Beijing, Shanghai and Shenzhen, China; and Raleigh, North Carolina. www.lenovo.com.
About Motorola Mobility
Motorola Mobility, a Google company creates mobile devices and wireless accessories that simplify, connect and enrich people’s lives. For more information, visitmotorola.com/mobility
About Google
Google is a global technology leader, focused on improving ways people connect with information. Google’s innovations in web search and advertising have made its website a top Internet property and its brand one of the most recognized in the world.
